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  • Jan 2020

4 Ps To Transform Your Business From Good To Great

4 Ps To Transform Your Business From Good To Great

A journey from Good to Great calls for change of approach and let year 2021 take you to the Level next as an enterprise. Another year has been set into motion and the question to ask yourself is how will your franchise system be better then what it was last year. Also, how will you make your franchise partners stronger, committed, engaged and profitable? For every franchisor this is the most important resolution that needs to be pondered over in 2021. A strong system creates a strong brand. As a franchisor, much too often we get into nitty-gritty’s without taking care of the macro details of the business. Let 2021 be a change of approach at your end to make the system more robust. Appreciate your partner, define your purpose and profit will follow.

Productivity over Performance

Are you, as a franchisor, satisfied with the performance of all your franchisees? Have you ever wondered why most partners consistently fall short of financial expectations? That’s because, in most cases, franchisors are only concerned about their performance without sparing thought for everyday productivity of the franchisee’s store and how it could be higher. Productivity is regarded as a measure of efficiency; more precisely, output per unit of input. As a growing franchisor, it is important to ascertain this year what measures will you take to increase everything in a llfranchisee’s store to give better yield – employees’ work systems, time adherence, customer service, resource management, etc.

Partner over Process

The predictability of the franchisor’s system is, of course, the primary attraction for a potential franchisee. However, the franchisor needs to ensure that we are still dealing with a person here and his individuality, business skills, zest and role can neither be undermined or be shunned from the system. It is important to first take all the steps to choose the right partner and then to make sure that he is well-managed. A typical franchisor’s system is that it is too much about operating procedures and not enough about the judgments and tradeoffs required to effectively manage a franchise.As a brand,when you increase their personal sense of honour and dignity,it will promote willingness to use the full franchisor system.

Pride over Passion

Passion is a good starting point but pride in work is what keeps us going. More important than an operation manual is the culture that a franchisor creates. In sharp contrast to the compliance approach used by many Brands, a franchisor’s support to trigger and drive a franchisee’s personal dream contributes to creating extraordinary franchisee pride in ensuring his best participation.As a case in point, rather than resisting creation of franchisee groups, this is something that a franchisor should encourage in order to transfer knowhow and exchange ideas with peers, which will enhance people’s openness to new ideas and the ability to learn.

Purpose Over Profit

While profit is critical to the franchisee and will always determine his stickiness to the brand, what is also important is that he needs to feel that he is working for some higher purpose which could essentially come from the purpose of the franchise business itself. Every franchise system, when it opens in a territory, would better the lives and lifestyle of the buyers or residents in some way. More often than not, once a franchisor starts growing big, he forgets the real purpose why his business was set up for and equally so the franchisee does not realise it either. It is important to re-visit the foundation of the business and remember what it was that the founder had believed in. That’s one way to keep the profitability consistent over the years.

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