This topic is actually applicable to both franchisors and franchisees because they are all business owners and the thing that most business owners do is to over complicate their business.
It is true, especially when it comes to growing their business.
Let me give you an example. I had a new franchisee to a system, who came to the system from the purchase of an existing franchisees business rather than a greenfield site.
This new franchisee was telling me all these things they were going to do to increase the profitability and sales of this business. They had some great ideas, don’t get me wrong, but a lot of it was focussed around lead generation and marketing.
I simply said to them ‘How long is it since the ex-franchise owner put up their prices?’ What we found was that this previous franchisee had not put up their prices in nearly 5 years!! (I know!!)
So I suggested that rather than doing a lot of work, what if they put up their prices by just 5% – 10% over the coming months. When we worked this out over a year, it meant an additional $35,000 to $50,000 in PROFIT! (before tax of course) The best thing…. How simple of a solution was this.
- No outlay/investment of money
- No extra time required
- No marketing
- No sales
- No extra team required
- And… this additional money, other than tax, would be PURE PROFIT
Why is it that we often look to complicate our business, rather than look for the simple strategies? Well, there are lots of reasons, but often it is because we think we have to do a lot and work hard to deserve a result, when in actual fact, sometimes the simplest strategies are the best.
So what are you overcomplicating as you are trying to grow your franchise business?
Tracey
P.S. If you haven’t already, why not check out my free quick guides and workbooks – you can find them on the home page of my website at www.traceyleak.com !