Joel Libava
Let’s talk about your potential franchise business journey.
From my strategic partner, Franchise Direct:
“The franchise owner journey is unique because there’s flexibility and a structure to guide your way. For those thinking about investing in a franchise, a common question arises in the consideration phase — what will the journey look like as a franchise owner after the initial investment?”
The writer, Kimberly Crossland, does a terrific job going through what your journey as a franchisee will look like after you buy the franchise and finish training. Check it out.
With those things in mind, I’d like to share something else about your journey. They’re the 3 distinct phases your franchise business will go through. They are:
- The launch
- Growth mode
- The mature business
Let’s look at each of them.
Your Franchise Business Journey: Launch Phase
The launch phase is a time of rapid learning and adaptation.
Your initial investment sets the stage, providing you access to the business system.
It’s a time to familiarizing yourself with the brand, its products or services, along with their key marketing strategies.
Additionally, this phase of your franchise business journey includes tasks like finding the perfect location, setting up your business, and forming your team. In addition, it’s a period of settling in, soaking up information, and setting the gears in motion for the future success of your new business.
The Growth Phase
Once you’ve gotten a feel for the business along with your role in it’s operation and success, you’ll begin entering the next phase. The growth phase of your franchise business journey.
This is when you amplify your presence in the market, nurturing customer relationships, and fine-tuning your operations for efficiency. This includes keeping a sharp eye on your expenses.
It’s also a great time to plug new numbers into your ongoing business plan.
Specifically, I’m talking about increasing your revenue and profit goals, now that you’re getting in the swing of things.
Tip: LivePlan provides an always-on business plan that you can adjust as needed. It’s how to keep track of everything you do in your franchise business and to see your numbers in action.
Finally, the growth phase of your franchise will need your initiative and strategic decisions. Those things that will help fuel its continued growth.
The Mature Phase
The mature phase of your franchise business journey marks the establishment of your franchise with steady (and increasing) revenue along with a loyal and profitable customer base.
Moreover, this phase is all about maintaining your success and looking for further growth opportunities.
For instance, if you didn’t do this in the growth phase, you may want to consider opening more units. Or adding more space and/or employees. And this is where your leadership will be needed.
Finally, this will inevitably become the time when you’ll need to make some major decisions about your franchise business.
Specifically, you’ll need to decide if you want to keep your business for a few more years and enjoy its positive cash-flow, or take your hard-earned equity and sell it.
The decision is yours.
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