Tag: Franchise

Franchise Prototype 101

In our  last post we talked about the first three of the seven specific areas you need to consider in your franchise prototype process. As a refresher, here are all seven again:

  • Primary Aim
  • Strategic Objectives
  • Organizational Strategy
  • Management Strategy
  • People Strategy
  • Marketing Strategy
  • Systems Strategy

These seven pillars form the foundation for the growth and ongoing success of your business. Now, we are going to cover the last four.

Think of constructing your business model like planting a tree. At first, it’s so small and weak you wonder if it will even make it through the night. Yet, you keep watering, fertilizing and nurturing it. Your ideas will grow the trunk and each of these strategies will extend out as the branches of your now strong tree. Finding the perfect support staff, employees, vendors/suppliers and other relationships will make your tree flourish with leaves and flowers.

Management Strategy
The way you structure your management team is not only essential to your growth, but the happiness of your employees and, ultimately, your customers/clients. This strategy is results-oriented and doesn’t depend on the people, but the actual system that’s in place.

A management strategy is, in short, a set of standards that includes goals, rules, a mission statement and other concrete guiding principles that tell your employees how to act, your management how to grow your business, and your customers/clients what to expect. These should all be in perfect alignment with your business goals.

People Strategy
You need to put together a people or “employee appreciation” strategy that shows your employees how you feel about their job performance and dedication to your business. They also need to understand “why” they are doing specific tasks. This helps them to personally connect to their job which, in turn, leads to better production and a happier workplace.  There are a number of strategies you can use to keep work interesting and to heighten and maintain employee engagement:

  • Short-term Performance Reward Contests
  • Long-term Performance Incentive Programs
  • Employee of the Month
  • Performance/Holiday Bonuses

These are just a few of the ideas you can use. One of the best ways to appreciate your employees is by calling a meeting and asking them how they would like to be rewarded.  Think about it for a while and put the best idea into play. Keep it fresh and change up the reward and recognition program you use from time to time to keep your employees guessing. Once they get used to the prize, it’s time for a whole new approach.  You need to build a community within your company. There needs to be support, appreciation and respect. The more “at home” an employee feels, the better they will perform and the more loyalty they’ll have.

Marketing Strategy
Marketing is, of course, essential to the success of any business, but it also must work cohesively with the other strategies you’re using. There are two major components of a successful marketing strategy:  1) the demographic profiles and 2) psychographic profiles of your customers.  The psychographic tells you what your customers are most likely to buy and the demographic tells you who they are, which can help you learn why they buy specific items. Without this information, it simply doesn’t matter how good your business prototype is.

Systems Strategy
There are three types of systems in every business:

  • Hard Systems
  • Soft Systems
  • Information Systems

Hard systems refer to inanimate system or systems that have no “life”, such as computers, in-house servers, storage devices, or other capital equipment.  Soft systems are those that could be living. Information systems which are, of course, everything else, including customer data, product information, financial…anything with data and numbers.

The most important of all three systems is the soft systems because it includes the sales and training systems your business uses. In your sales system the two keys to success are: structure and substance. Structure being what you sell and substance being how you sell it.

All three systems are essential to the success of your business.  While they all have their own very specific roles, they all must work together to get the job done. This also goes for your entire business development program.

On that note, I want to take a moment to recap the main themes we’ve covered in the recent business development lessons from our blog.

First, we explored the entrepreneurial myth, or e-myth, is an assumption that anyone can succeed at business with:

  • Desire
  • Some capital
  • A projected targeted profit

Next, we covered the essential three key roles that need to be filled to set your business up for success:

  • The Technician
  • The Manager
  • The Entrepreneur

Then, we highlighted the four different stages of a business life cycle are:

  • Infancy
  • Adolescence
  • Growing Pains
  • Maturity

Also, we illuminated the three core concepts of the franchise model, if you are considering that path to expand your business:

  • Business Format Franchise
  • The Franchise Prototype
  • Franchise Prototype Standards

Additionally, we addressed the three main areas of business development:

  • Innovation
  • Quantification
  • Orchestration

Lastly, we specified the seven areas you need to consider in your franchise prototype process:

  • Primary Aim
  • Strategic Objectives
  • Organizational Strategy
  • Management Strategy
  • People Strategy
  • Marketing Strategy
  • Systems Strategy

We can help you define, design, develop, and deploy the appropriate business model and business development strategy and processes to turbocharge your business and leapfrog your competition. Please contact us to learn more about how our innovative, proven e-Marketing platform and business elevation coaching services can take your business to the next level.

Are You Crystal Clear On Your Aim?

To recap from our last blog, the seven specific areas you need to consider in your franchise prototype process are:

  1. Primary Aim
  2. Strategic Objectives
  3. Organizational Strategy
  4. Management Strategy
  5. People Strategy
  6. Marketing Strategy
  7. Systems Strategy

In today’s lesson, we are going to cover the first three areas, which will lay the foundation for your business to achieve the ultimate pinnacle of success.

Primary Aim
It’s essential in business development to set goals and see a vision for the future. This needs to go beyond the business and you need to think about what you want out of life.

What do you dream about? How do you see your success unfolding?

Knowing and understanding these things will give you the momentum to get started on your entrepreneur journey and the stamina to see it through. Even take a minute to write them down and tape them to your desk for a constant reminder of what you’re aiming for.

Strategic Objectives
These are essential in taking your business from surviving to thriving. All of these objectives should offer solutions for how to get to your primary aim. There are many things you can use to set strategic objectives, but here are a couple of the most popular:

  • Money:  Setting monetary goals is a great, simple way to see how you are doing at any point in the game. It’s easy to measure and easy to find adjustments to help meet this goal.
  • Worthy Opportunities:  When considering strategic partnerships and other business opportunities you need to think about whether or not they will help you reach your primary aim. Those that will are the best opportunities to seriously consider.

The key in setting standards and goals is not to limit you or stress yourself out. You need to find some quantifiable things you can use to measure your progress toward your primary aim. These are just two suggestions, but make sure no matter what standards you set that you are paying attention to the details, as these form the backbone and blueprint to your master growth plans and they are one of the biggest keys to your success.

Organizational Strategy
The strength of your organizational structure can make or break your business, so it’s important to take the time to put together a solid structure for your business to grow from. Generally, a company is organized around the roles and responsibilities that need to be taken care of on a daily basis and the personalities that need to fulfill those roles.

No matter what roles and responsibilities you’ve defined for your employees, you must always keep your personal primary aim separate from your company’s primary aim or mission statement. Once you’ve identified the primary aim for your company, it will be easy to set up a team position structure or organizational hierarchy that will work.

Don’t forget to put together position contracts. Your employees should sign a statement of their roles and responsibilities. This helps keep the division of labor clear for you, the employee and other employees/vendors or other individuals, instills accountability, and eliminates redundant, duplicate efforts to maximize team collaboration.

You can see how these areas all work together to form a solid foundation on which to build your business. If you need help defining any of these areas, you can check out the business building resources and tools of our client attraction e-Marketing system and speak with one of our revenue growth acceleration and customer experience strategists today.

Solidify Your Foundation And Soar

Today I’d like to talk about the three keys to business development and how you can put the right bricks in place to build a solid foundation.

There are three main areas of business development:

  1. Innovation
  2. Quantification
  3. Orchestration

If done well, these three areas will help you build a solid foundation for you business.

Let’s talk about each one of these for just a minute.

Innovation
Innovation should not be confused with creativity, which is the expression of ideas.  Innovation is taking these ideas and putting them into action. This is where a large amount of your focus should be in the beginning and even throughout your business’ entire lifespan.

Quantification
This, of course, refers to the numbers. We are talking about the value of your innovation. The best way to gauge this is by your customer response. Look to positive responses for what you are doing right and keep doing it. Look to your negative responses to find out what you’re doing wrong and fix it. This will enable you to keep growing and progressing with the needs of your customers and business climate.

Orchestration
Once you’ve had a chance to find what areas are working, you can narrow down those areas and concentrate on making them the stand out ideas. You shift your focus here to get the most out of your business and to meet the needs of your customers.

We can help you work through these three areas to put together your franchise prototype.  In fact, in the next few lessons we are going to transition to the seven specific areas you need to consider in your franchise prototype process:

  1. Primary Aim
  2. Strategic Objectives
  3. Organizational Strategy
  4. Management Strategy
  5. People Strategy
  6. Marketing Strategy
  7. Systems Strategy

These seven areas will accelerate your plan to achieve the ultimate level of success.  Stay tuned!

To Supersize, First Systematize

The biggest area of turn-key businesses is franchise. There is a franchise for every industry in the world.  Plus, they are fairly easy to acquire and come with practically a pop out of the box pre-assembled system. McDonald’s is a prime example. In fact, a “supersized” example with $136 billion in market cap as of April 24, 2020.

Today, there are a few topics we’ll explore:

  • Business Format Franchise
  • The Franchise Prototype
  • Franchise Prototype Standards

Business Format Franchise
The business format franchise came from an earlier model called the “trade name” franchise. The big change was in the rights. During the “trade name” days, the franchise owner only had marketing rights.  Now, however, franchise owners have owning rights to the entire business, including systems. This has allowed for a shift in focus from the past in which the quality and name recognition of the products primarily carried the business compared to today in which standard operating procedures and repeatable processes, such as sales operating models and techniques, also drive the business.

The Franchise Prototype
It was really the franchise prototypes that allowed for the changes to be made that help today’s franchises really shine with the techniques developed by the owners instead of the corporation. This can make a significant difference in the success of the franchise, as the owner can custom tailor their marketing and promotions to the direct needs of their
local target customers.

Franchise Prototype Standards
Now, the above being said, no one in their right mind would purchase a franchise if the parent company didn’t have a solid plan of action set up to ensure the future success of the business. Below are a few foundational standards that are put into place to help jump start the process of opening a successful franchise:

  1. Build a user-friendly model that can be used by individuals of any skill set.
  2. Build a defect-free model.
  3. Build a model with operations manuals.
  4. Build a model that will provide guaranteed, consistent results.
  5. Build a model that encompasses the same branding in color, dress, and facilities
    codes.

These are all ways the parent corporation makes sure its brand stays the same and consistently in front of the minds of customers. When you are purchasing a widely-known brand, you will attract customers just for being you.

If you are considering purchasing a franchise, talk with one of our experienced business coaches to further explore your options and incorporate the proven perspective of an independent third-party business development expert to your due diligence evaluation.  I look forward to connecting soon and showcasing further how our proven “5 Step Profit Formula” and revenue growth acceleration strategies will make your dream of building, systematizing, and expanding your own multimillion-dollar business a reality!