Starting a franchise business is all about the Benjamins. Let’s face it – money talks, and money also helps facilitate your success. Without it, your business won’t be able to run, and it certainly won’t be able to cater your career. Yes, franchising in and of itself can be about the dream of running a business. (This is a great reason to open your own franchise location in the first place!) But without profits, that dream simply won’t be possible. Funds are what make it all possible.
Of course, even when your business is successful, you want to find ways to bring in more money. An increase in profits can mean a raise for you and/or employees. It can mean expansions for the brand, more money that can be put back into the company, or expanding and opening up a second location. The world is your oyster once the funds are coming in. But any way that you put it, franchising is all about profits.
Here’s how you can work to increase them, even as a new franchise owner:
Streamline Your Franchise Spending
This may seem obvious, but are you really keeping track of what goes out the door? If so, how closely? For food establishments, this might mean weighing or measuring sides, limiting to-go items like sauces and cups, etc. Or simply figuring in those items to your prices. Be sure all employees are on the same page of what’s protocol so you’re on an even spending keel.
You should also limit the amount of overhead you have at any given time. It can be a tricky balance to ensure you have enough to not run out, but not so much that you break the bank. It’s a dance that will get easier over time, especially as you deal with busy seasons. In any case, having too much overhead on hand can deplete your funds.
The ways in which you’re able to become more efficient will also depend on your industry. Painters can ensure they aren’t spilling or wasting excess paint, and washing their brushes thoroughly so they don’t have to be replaced. Accountants can use online files to avoid printing paper or using too much ink. Whatever you specialize in, go over the ways in which you can decrease spend while increasing customer satisfaction. You will know your business better than anyone, including the ways to cut costs without hurting your progress in the process.
Work Smarter, Not Harder
When hiring employees, when training them, go for the long-term goal. Don’t just hire a “right now” worker who wants to put in the bare minimum. Find motivated, thoughtful workers who are willing to learn, put in effort, and grow with the brand. Of course, this means creating an environment in which they want to work. It also means putting focus on training, allowing employees to educate in subjects that are important to them, and more. It also may mean paying more or offering a bonus structure that’s attractive to potential employees.
However, don’t look at it as costing more in labor, but providing more value in those who are working. Hands-down it’s an investment that’s worth its weight in funds and then some. Consider just how much a good worker can bring to the table, how much they can take off of your plate, and how the business will benefit because of them.
Provide an Amazing Customer Experience
At the end of the day, you can’t grow your profits without customers, it just won’t work. Your customers need to be happy and have a great experience with your franchise brand, so they’ll return. If they are pleased with your company, they’re also likely to refer others and encourage them to patron your location. But that’s only the beginning, there are online reviews, casual mentions, and the memory as to whether or not they should return. Over time, happy customers will become your best advocates, and keeping them in your good graces can completely change the amounts of profits you make each year.
Remember to provide a good experience for your customers – clean space, high-quality services, friendly workers, etc. It’s not complicated, it’s just a matter of making sure all of the pieces align.
Doing so can bring your franchise business together in order to create success, and ultimately, meet your goal of higher profits and better margins.