Opening a business takes a huge leap of faith. But the great part about franchising for veterans is that there's a tested blueprint to follow, helping you land on your feet and increasing the opportunity for success.
"The franchise agreement may remind veterans of an Operations Order as it outlines the equivalent situation, mission, execution, sustainment command and control of the business," explains Monty Heath, U.S. Navy SEAL and Director of Veterans in Business at PrimePay.
Getting your business off the ground is one thing, but if you really want to be successful in franchise operations, the key is maximizing profitability.
Here are four ways franchisors and their franchisees can do this:
ASSESS TRENDS AND IDENTIFY AREAS OF IMPROVEMENT
The first step to maximizing profitability is to identify the data needed to help understand how you are doing and where you can improve. This can include both financial and operational metrics.
For example, franchisors often focus on top-line sales and fail to consistently review their franchisees' bottom line. With current data, franchisors can identify a struggling franchisee and intervene long before the franchisee is in danger of closing the business.
To obtain actionable data, appropriate systems must be in place. Manually collecting data is time consuming and costly. Identifying and implementing systems will help a franchisor easily collect the data on a more consistent basis.
First, determine how often you want to collect. But keep in mind that the more real-time--and complete and accurate--the data is, the greater your ability to assess trends and identify areas of improvement.
Trends show when something is not right or problematic, especially compared to a prior period or year-over-year analysis. A dip or spike in a graph can trigger a franchisor or franchisee to investigate a specific area further to determine whether additional information or action is required.
The real power of analytics comes not only from the assessment of data, but also in taking action to improve the situation and profitability. A franchisor can also use this data to identify top performers and trends to help coach other franchisees.
ASSESS TRENDS AMONG OTHER FRANCHISEES
After identifying the actionable data and implementing systems, you must verify the data. The purpose of the data is to help make well-informed, data-driven decisions.
The phrase "garbage in, garbage out" applies here; if the data is...