Franchisees face numerous challenges and uncertainties in their journey as business owners. From evolving market conditions to succession planning, it is crucial for franchisees to proactively strategize and prepare for the future. A recent discussion between Jeff Bannon, succession planner at The Rawls Group, and Aicha Bascaro, president of the American Franchising Academy, highlights the importance of staying in control and offers insights on how franchisees can fulfill their entrepreneurial dreams. The following are insights from their perspectives along with key strategies for franchisees to navigate the dynamic business landscape.
Anticipating Headwinds and Strategizing for the Future
Franchisees must be prepared to face headwinds that could impact their business if they haven’t strategically planned for the future. Franchisees need to strategize creatively and look ahead to secure their entrepreneurial dreams. Understanding their position regarding the future of their company is crucial. Franchisees fall into one of three categories: those who plan to sell, those who intend to keep their business, and those who are unsure of their future plans.
Selling the Business: Timing and Market Opportunities
The timing and market conditions are key factors for franchisees considering selling their business, and franchisees should identify a suitable market time to sell when they are ready to exit. Selling a business requires careful consideration and planning to maximize the return on investment.
Keeping the Business: Empowering Successors
Franchisees who wish to retain their business face the challenge of staying in control while preparing to pass it on. It is essential to establish mechanisms such as a succession bridge. By empowering and developing a qualified and competent team of successors, franchisees can ensure that their business can continue to thrive even in their absence. This enables franchisees to maintain control over the destiny of their business and the legacy they have built.
Navigating the Uncertain Future
Many franchisees are unsure of their future plans and focus on gaining clarity in decision-making. Strategic planning initiatives become vital in such cases. Franchisees must assess their current reality and envision their preferred future. Establishing mechanisms and training programs, such as succession bridges, equips franchisees with the confidence that their team can successfully run the business in their absence. This empowers franchisees and their loved ones to make informed decisions about the business’s continuity or potential sale.
Teaching the Team for Future Success
To ensure control over the future, franchisees need to develop and train their team members to assume leadership roles within the company. While no one can replace the owner’s institutional knowledge and experience, franchisees must focus on passing on essential skills and responsibilities to their team. By doing so, franchisees can break free from being handcuffed to the business, allowing them to explore new opportunities and maintain control over their future.
The Three Roles of a Franchisee: People, Brand, and Business
Bascaro outlines the three critical roles that franchisees must fulfill to maintain control and grow their business. The first role is to grow and protect their people, fostering a supportive and growth-oriented environment for employees. The second role involves growing and protecting the brand, leveraging the established reputation and revenue-generating potential. Lastly, franchisees must focus on growing and protecting the business’s profitability. Achieving these roles requires a combination of developing competent teams, nurturing the brand’s value, and implementing strategies to maximize profitability.
Commanders of Their Business
Bascaro’s emphasis on being a “commander” resonates with the idea of being in control. Franchisees should strive to work on their business rather than get stuck working in their business. Creating a structure that allows franchisees to delegate responsibilities and step away from day-to-day operations is vital. This freedom enables franchisees to make strategic decisions, explore new ventures, and enjoy the fruits of their hard work while maintaining control over their business and personal lives.
Franchisees aspiring to fulfill their entrepreneurial dreams and maintain control over their business must anticipate challenges and strategically plan for the future. By preparing successors, fostering a growth-oriented environment, protecting the brand, and maximizing profitability, franchisees can position themselves as commanders of their business. Empowered with the right strategies and a clear vision, franchisees can navigate the ever-changing business landscape and secure their entrepreneurial dreams while remaining in control.
For more information on this topic, check out the video, For more information on this topic, check out the video, Expert Advice for Franchise Business Growth and Management.
Kendall Rawls knows and understands the challenges that impact the success of a family-owned business. Her unique perspective comes not only from their educational background; but, more importantly, from her experience as a second-generation family member employee of The Rawls Group – Business Succession Planners. For more information, visit seekingsuccession.com or email info@rawlsgroup.com.