Expanding your business in a franchise system

If you are a successful franchise of a large franchise brand or chain, chances are you will wish to expand. The most important thing to do is make sure you are on the most positive terms with your franchisor. You should tell your franchisor at the earliest point of your plan to expand. It is important that you ask the franchisor for help when you are expanding. Growing your business is not an easy task. It requires systematic checks of your business. The kind of checks your car does electronically such as sensors telling you:

Your alternator is charging

Your battery is good

Your seat belt is on

You have gas in your tank

Oil pressure

You are not overheating

Your speed is ok

Your RPM's are appropriate for the gear you are in

As long as the little warning lights are good, everything is ok. Right. Wrong. As you know, those are important indicators. However, what about the warning buzzer that says; Your door is ajar. Your door really isn't a jar. It's a door, not a jar. This sounds funny but think about it. There are warning lights in a car but they may mean more than they say or they may be a false alarm.

For instance, when you turn on your engine all the lights are on. Most modern cars display malfunctioning lights at least once during their life. These lights are great for idiots, as a matter of fact they are often called idiot lights, but they are bad for do-it-yourself mechanics. Some cars display lights automatically at a certain number of miles. The check engine light goes on. The dealership is the only one who can reset the lights. If you are a do-it-yourselfer and have maintained the car yourself, the light still goes on and stays on. Later, when something does go wrong, the do-it-yourselfer doesn't know because the light has always been on. Whoops.

Like a car, franchisors have built safety switches into there business models. They have out all the mistakes for you before they happen. These set of idiots lights will help you, but make sure you are interpreting them correctly. An erroneous reading of a warning light will create unnecessary hardship for you as a franchisee. An example of an erroneous reading would be:

Your sales are up 50% and you just signed a huge one year contract. You should expand because you are doing 1.5 times what a normal franchise does right.

Most would say yes, business is up, new contracts coming in, you are good as gold. On the surface this may look good. But any good franchisor will tell you this is a typical sign of a cash flow issue. Sales are up, but how are receivables? One year contract is good, but are they also net 90 days? If you do not have proper cash flow funding you could wind up waiting for a check in the mail the day the bank comes in and wants to repo your entire store? This is why you need to talk with your franchisor and have a game plan, pay attention and use their expert advice? After all that is why you bought a franchise in the first place. Think about it.

"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs

In The News:

Strategic Plan  Bethel College, KS
Seton Hall Unveils Strategic Plan  Seton Hall University News & Events

Thinking Like A Farmer

One of the difficulties we face in our industrialized age... Read More

How to Grow Your Business by Clearing the Way to Growth

Is your business growing as fast and effectively as it... Read More

Take A Systems View To Ensure Your Business Stays Healthy

How are you feeling today? Good, not so good, great?... Read More

SWOT Analysis

If you've ever listened to Warren Buffett talk about investing,... Read More

Business Plans Keep You On The Success Course

Where would your business be without a proper plan? A... Read More

Business Ideas: 3 Smart Ways To Generate Profitable Business Ideas Anytime

Creativity is one of the greatest tools for success in... Read More

Business Plan: Planning the Operations

Writing a business plan is no easy task, sure you... Read More

Fail to plan... or Plan to FAIL??

Running a business, whether it be an offline multi-billion dollar... Read More

The Six Sigma Method and Design of Experiments

Six Sigma is becoming a proven approach for businesses and... Read More

Expanding your business in a franchise system

If you are a successful franchise of a large franchise... Read More

Seasonality: Whats the Big Deal?

Do you work in or own a business that's affected... Read More

Is Your Company Growing Fast Enough for You?

Are you frustrated by the lack of growth in your... Read More

Mastermind Your Way to Success

What do Mark Victor Hansen, Robert Allen, Anthony Robbins, Andrew... Read More

Business Plan Long Term Goals

Writing a business plan is not an easy endeavor, nor... Read More

Akron OH; A great place to do business

When looking at Akron carefully one cannot help but notice... Read More

Writing a Business Plan for Success in Business and for Funding

Writing a business plan to help you direct and manage... Read More

Who is Responsible?

While writing an article recently on effective ways to bridge... Read More

Business Problem Solving

Is there really anything as a problem? Does chaos or... Read More

How To Leverage Your Current Ideas And Products Into Multiple Revenue Streams

Diversify - to make diverse, give variety, to balance, to... Read More

The Power of Strategic Thinking: Creating Meaningful Success

Too much goal setting and strategic planning can leave you... Read More

Writing Your Business Plan is Actually Storytelling

Storytelling and writing a business plan actually go hand in... Read More

What is Your MSP?

For many consumers and producers, MSP is an acronym for... Read More

Top 10 Tips to Create A Business Plan! (For People Who Hate Business Plans)

One of the key challenges for any business is to... Read More

Cost-cutting Essential to Maintaining Profits

Why cut costs now? Efforts are multiplying to cut costs... Read More

Menu Driven Business Planning

A menu is the foundation of any restaurant; Guests will... Read More