Mastering Objectives and Strategy for a Thriving Future

family-business-succession-planningApproximately 20% of new businesses fail during the first two years of being open, according to data from the Bureau of Labor Statistics. Additionally, 45% fail during the first five years, and 65% fail during the first 10 years. However, only 25% of new businesses survive for 15 years or more. These statistics have remained fairly consistent since the 1990s. While opening a new business has risks and challenges, multi-unit franchising is a business model that allows entrepreneurs to begin a venture with a recognized brand, products, and services, giving an entrepreneur a “leg up” in starting and growing a new business.

Franchising offers advantages like lower startup costs and assistance from the franchisor, but success is not inevitable. Hence, it is essential to precisely understand one’s objectives and plan to set up a successful business, as our example below illustrates.

A Multi-Unit Franchisee’s Journey

With dreams of owning a successful business, Alex was intrigued by the concept of franchising. The idea of lower startup costs and the promise of assistance from the franchisor seemed like the perfect opportunity to turn his dreams into reality. With his mind set on becoming a franchise owner, Alex embarked on a journey to find the ideal investment concept. Hours were spent researching various industries, analyzing market trends, and evaluating potential opportunities. It became clear that success as a multi-unit franchisee required more than just financial investment; it demanded a precise understanding of one’s objectives and a well-thought-out plan.

Alex carefully assessed his and his partner’s skills, interests, and passions before finally settling on a franchise that aligned perfectly with their vision – a cozy coffee shop named “Brew Haven.” The franchisor offered comprehensive training, ongoing support, and a proven business model.

With the franchisor’s guidance, Alex meticulously planned every aspect of their new venture. He studied the market, identified potential customers, and devised a marketing strategy. They even reached out to the local community, building anticipation for Brew Haven’s grand opening.

Finally, the big day arrived. The doors of Brew Haven swung open to welcome eager customers. The aroma of freshly brewed coffee filled the air, and friendly conversations echoed throughout the café.

However, as months turned into years and Alex opened additional units, he faced unexpected challenges. The competition was fierce, and transitioning from an operator to a business owner, attracting employees and customers, was more complex than anticipated. Despite his careful planning, success did not come easily. Doubts began to creep into Alex’s mind, questioning how he could mature as a leader/owner, build the team necessary to support his business, and whether his decision to grow into a multi-unit franchisee was right.

But Alex refused to give up. Instead, he sought guidance from experienced franchisees, resourced a strong team of professional business advisors, attended seminars and workshops, and adapted his strategy. They realized that success in franchising required a precise understanding of their objectives and the flexibility to adapt to changing circumstances.

As time went on, Alex engaged in strategic planning to align vision and resources and created a highly attractive organizational culture focused on developing talent, which positioned his organization as a highly sought out place to work. Alex, and his partner, grew as leaders, empowered their team, and were able to diversify their brands.

Looking back on their journey, Alex realized that franchising had offered advantages like lower startup costs and assistance from the franchisor. However, they also understood that success was never guaranteed. Their unwavering determination, meticulous planning, and willingness to adapt ultimately led to their triumph.

Today, Brew Haven is a testament to Alex’s dedication and the power of setting precise objectives and planning for the future. It serves as a reminder to aspiring entrepreneurs that in the world of franchising, success is not handed out easily – it is earned through perseverance, resilience, and a deep understanding of one’s goals.

Building a Sustainable Business Model

What is Your WHY?

Identifying your reasons for owning and getting into the franchising business is a crucial first step in creating the future you envision. As the day-to-day constantly unfolds, it is easy to forget the “WHY” of all the hard work and risk.

Ask yourself:

  • Are you aiming for a quick return?
  • Do you want to create generational wealth?
  • Are you interested in creating opportunities for others, and possibly family?
  • What do you want for the next 5, 10, 15 years? What do you want your role to evolve to, how do you want the business to be structured, what size, what brands (and why)
  • Are you passionate about the brand or product?

Aicha Bascaro with the American Franchise Academy emphasizes that understanding one’s motivations is crucial for franchisees to promote themselves and achieve success. Having a clear end goal is essential for building a successful business. Whether the objective is to sell a profitable business or develop a team for future operations, focusing on building up employees is vital. According to Jeff Bannon a succession planner with The Rawls Group, developing people is the only way to reach a point where options and freedom are available.

Having a Destination in Mind

Having a definite destination is essential; however, creating flexibility within your strategy is also important. Multi-unit franchising can be a fulfilling and exciting journey and challenging and tense. Therefore, taking a moment to appreciate your successes and find joy in the journey is essential.

A succession strategy is also essential to take your business from point A to point B. Succession planning creates different options and the flexibility required to arrive at your destination, regardless of the economy, franchisor, customers, competition, etc., throws at you. Even if you intend to remain part of the business for the long term, it is essential to have a plan in place for when you want to transition into a different role and/or eventually leave. This could involve selling the business, transferring it to a family member or dependable employee, or simply taking a step back from the day-to-day and enjoying the rewards of your hard work.

Understanding your objectives and strategizing toward the future you envision is crucial for arriving at your intended destination. By recognizing your motivations, establishing a clear aim, and developing a succession strategy, you can build a strong foundation for your venture and pave the way for long-term success.

Contact Us, and we can help you with insights and other resources and see if it makes sense to work together. At the very least, in 30 minutes, you may get some ideas you can apply to your business immediately.

The article was originally published on Franchising.com: Do You Have a Clear End Goal in Place for Your Business

For more insight:

Visit the “Franchisee Succession: How to Grow & Build Value” discussion page or select one of the additional episodes of the series below:

Resources

  • American Franchise Academy: assistance for franchise leaders in building a successful growing enterprise so that they can achieve their business & financial goals.
  • Succession Readiness Survey:  A 7-minute investment in time will put you in an informed position of opportunities many business owners overlook, impacting business value, growth, and lifestyle, and ultimately achieving your vision.
  • Contact a Succession Planner: The Rawls Group can help you with insights and other resources and see if it makes sense to work together. At the very least, in 30 minutes, you may get some ideas you can apply to your business immediately.


The Succession Planning Matrix

Many people put off succession planning because they think it means retirement, exit, and the end. However; succession planning is just the beginning. It gives the owner options in terms of what “their next” looks like, whether that be growth, philanthropy, or a new business venture. Our process focuses are addressing 10 key areas of what we call the Succession Matrix.family-business-succession-planning

Click the following link for more drill-down resources on The Succession Matrix, or check out our Facebook post.

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We can provide insights and other resources and assess whether it makes sense to work together. In just 30 minutes, you may gain actionable ideas that you can immediately apply to your business. Contact us via phone or email below, or fill out the “Ask An Expert” form.