How to Adjust Business Strategies to Prepare for Recession
As succession planners, we are frequently asked by multi-unit franchisees how to prepare for change and transition. On top of the mind of many multi-unit franchisees is an impending recession and talent shortages which requires adjustments to their growth strategies.
Preparing your business for future change depends on whether you are in a mental, emotional, and financial position to take on risk and invest more or pause and reflect on current processes and strategies.
Jeff Bannon, a succession planner with The Rawls Group, shares:
“People who worry about getting money or capital, the best thing to do is hold your cards and ride it out if you can. But, on the other hand, for people who want to be a little more aggressive and want to take some risk and have a longer view, the thing is to maybe buy things or look for things to buy at a price that is a little better than the past.”
Remember that not every business makes the same choices; there are no wrong choices, just the choice, and plan that works best for your business. Continuing to expand is great, but sitting back can be just as beneficial in making sure plans, and people are in good positions to keep moving forward.
Protecting the business requires developing processes, people, and financial capital. A business’s future cannot depend on one person. A self-centric company and system will not preserve or continue to grow until more people are involved.
“There are three components to growth: people, processes, and financial capital. Most successful entrepreneurs have processes and capital right now,” said Bannon.
Recruiting, retaining, and creating a bench strength of top talent is the most challenging part of growth because hiring and keeping the right people takes time and money. Michael Einbinder, a franchise attorney with Einbinder and Dunn, said,
“What you need to do is incentivize people to care about what they’re doing and want to stick it out through whatever the next step in the business is, whether it’s selling or growing, and most of that, but not all of it, is compensation.”
To recruit and retain top talent, create processes and ensure your key staff knows they are a part of the plan to maintain control over unexpected difficulties. They need the motivation to stay and grow within the business, and that motivation could come from various sources, including a competitive salary, benefits, and work-life balance.
Communication is crucial as individuals value stability and upward mobility within the organization, especially if their future involves growth and the possibility of becoming the organization’s next great leader.
Einbinder & Dunn: Einbinder & Dunn’s founding partners have been practicing law for over 30 years in franchising, litigation, real estate, business, fashion, and trusts and estates.
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.
Vision, mission and core values are at the heart of the strategic planning process. Click the following link for more drill-down resources on Strategic Planning.