How to Protect and Grow Your Business During Economic Uncertainty
The pandemic impacted us all, causing some to reap the benefits and others to be shut down. And our fickle economy is causing many multi-unit franchisees to wonder what the best strategy is to thrive through next year. As the world evolves and changes, basic principles, such as processes, procedures, marketing, talent, attractive culture, capital, etc., stay the same.
Jeff Bannon, a succession planner with The Rawls Group, and Michael Einbinder, a franchise attorney with Einbinder & Dunn LLP, discussed strategies for multi-unit franchisees to protect and grow their business despite inflation, recession, and the next curve ball in the future. The two provided insights based on past and current experiences working with multi-unit franchisees.
Michael Einbinder was asked,
“What can a multi-unit franchisee business owner do today to consider the possible, probable, and potential issues impacting their business and determine their best strategy forward?
“Everyone takes this time a bit differently, there is a short-term and a long-term view. Some risk-averse people want to hold their cards for now, and some want to be more aggressive and have a long-term view of things, and they may make different decisions.”
Jeff Bannon provided insight on how a multi-unit franchisee can protect their investment through this business environment.
From a protection standpoint, protecting the business means you have processes in place, people in place, and financial capital to make sure the business can sustain in your absence. If someone inherits the company with no operational experience, and the company decides to sell to the market and the predictability of cash flow has gone down, owners will have to sell at a lower value price. That said, getting your personal affairs in order is fundamentally the best way to protect the value.
Jeff Bannon continues to share how a multi-unit franchisee owner can also grow during this time, as opportunities are everywhere.
There are three components to growth: people, processes, and financial capital. If an opportunity falls in your lap that is too good to be true, do you have the manpower to do this?
Regardless of the state of your business and the current or future economic situation in the U.S. and globally, to succeed through transition, multi-unit franchisees must have well-thought-out strategies to overcome and capitalize on opportunities at their fingertips. Not having an A, B, and C plan can be the difference between a successful and unsuccessful business.
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.
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.
The only constant one can plan for is change. Strategic planning positions the business to address the probable, possible, and potential contingencies impacting business success.