If you are wondering what is in store for your business in 2017, the short answer is Grow your business’s potential to expand internationally regardless of whether you are in the early part of growing your business or if you are already an established player.. If you have been observing the global disruption that has been occurring in both the political and economic scene in the global economy, you would probably be thinking what your growth strategy should be.
1. Focus on your domestic market and build your brand further
2. Accelerate the pace and territory of your growth so that you brand will be able to take advantage of this new environment.
Franchising is a very attractive way to grow without bearing the full risk involved with brand expansion. However, just how many franchised brands have really thrived after the initial glow of a new relationship with their franchisees? Most brand owners have been conditioned to think that all that is required to build a successful franchise is to develop a Franchise strategy, a Standard operations manual, offer some form of training and set up to get the franchisees going, recruit franchisees who would pay the franchise fees and wait for the royalties to flow in.
The reality of franchising is that it is a full time commitment by the brand owner to develop their franchise and manage it on a day to day basis. It is about strengthening their business’s key drivers, ongoing development and improvement on the systems to keep their franchisees fit and profitable. It is a combination of strategy and operational efficiency. Mostly it is about systematic building of business fundamentals. As a SPMCC that has been helping Singapore brands grow in the region, I have found that companies should look internally at their key business excellence drivers, ensure they are sound before using franchising as a vehicle for growth. Franchising is the process of sharing key success factors and replicating them so that other parties can benefit from the operational know how and increase their chances of success. If the key drivers are not fundamentally sound, then it goes to reason that franchising would simply be nothing more than the formalization of faulty processes and know how.
To improve the chances of building a successful franchise system, take some positive steps to strengthen your key drivers in Leadereship, Planning, people, use of information technology, People & Training and Customer service
1. Ensure you there is a clear leadership in place, a distinctive Brand DNA and strong Financial fundamentals.
2. Ensure there is a clear business plan and a strategy to attract and maintain customers
3. Consciously work on Operational efficiency
4. Ensuring the people in the organization have clear career path growth and are motivated is key to the physical growth of a company.
5. Upgrading the skills of the people will ensure the company is able to benefit from new disruptive technologies and contribute to more efficient and higher margins
6. Once the foundations of the business are firm, the business needs to build a strong backend supply chain, renewed effectiveness and replicability to ensure scalability.
7. Wrapping technology around business and developing processes that improve efficiency can add an incomparable level of productivity that can help the companies break through their plateaus.
8. With a strong foundation in all the various key drivers of the business excellence framework, business owners can then consider franchising and other expansion models