Being the owner of a nice, booming business is every entrepreneur’s dream. Of course, building such an enterprise is not easy. Businesses can and do fail while attempting to make it big. Fortunately, you can learn from their experiences, including the good and bad ones, and avoid making the mistakes they made so you can maximize your chances of success.
In this mini-guide, Tom Scarda from The Franchise Academy covers some critical considerations you should make when expanding your franchise or other business:
Do you have enough gas in the tank (aka funding)?
According to FreshBooks, it can take 18 to 24 months for businesses to achieve profitability. This is a critical statistic. Even if you have a solid business model with high profit margins and quick cashflow, you need to be able to sustain yourself and your business for almost 2 years before you’re going to gain traction in the market (with your new franchise, new product launch, or similar). Figure out a source of funding, and double-check to be sure that you can maintain your line of credit.
Do you have a game plan?
A solid game plan allows you to make use of your resources wisely, to achieve maximum gains with minimum effort. The Balance Small Business recommends all businesses set up SMART goals – specific, measurable, attainable, relevant, and time-based. Having short-term sprint goals and long-term, overarching ones are typically business best practices. Remember, a goal is just a dream with a date attached to it.
Do you have the people or talent to execute the said game plan?
Business is a team sport. To achieve your goals, you’ll need skilled people. These should be people you can count on and who, of course, fit well into your company culture. Make sure your team is ready and willing to take on the expansion challenge. Also, figure out an efficient, effective recruitment process to account for turnovers. Profit sharing, for example, is an affective tool that gives the staff ownersip and keeps them around to enjoy the fruit of their own labor.
Is your team prepared for remote work?
Remote work has pretty much become the norm thanks to the pandemic. If any of your team work remotely, it’s a good idea to ensure they can do so optimally. Planning with an online monthly calendar can help in this regard. This provides a 30-day view of task lists for both individuals and entire teams, in line with your business goals. It can be customized with graphics, videos, and sticky notes, which makes it a perfect tool for tracking tasks and managing deadlines, even for remote teams. Something to think about these days.
Do you have a fallback option if your plan fails?
Things rarely go to plan, and market conditions can be chaotic. Every entrepreneur needs to be able to think on his or her feet and make changes to plans on-the-fly, to navigate through stormy waters. It’s a good idea to have secondary options prepared, like contingency and fallback plans.
Is your product or service ready for the challenge?
Your product (or service) is the heart of your business. When you’re expanding, it’s going to put more pressure on your existing product and work processes. It may be a good idea to run some tests to see how well your work processes would hold up as you grow. Also, you might want to ensure your product or service is competitive and can meet customer expectations.
Can you build up a solid relationship with customers?
You’ll need to build a solid relationship with your customers to back up your product or service. Customers like businesses that take care of them, offer a valuable product or service, and respect their time, among other things. A good marketing campaign and branding can help you engage with and win the trust of customers.
Are you prepared for the risk?
Finally, ask yourself if you’re prepared for a big leap ahead. It can be mentally and emotionally taxing to take risks and walk into the unknown. Entrepreneur burnout is real, and you may want to take extra efforts to look after your wellbeing. A healthy you is necessary for a healthy business.
Conclusion
It pays to have guidance and assistance to aid you in your expansion goals. The Franchise Academy can offer the education and support you need to succeed in your business. Regardless of how you play it, we wish you the best of success. Think like an entrepreneur, keep at it, and you are sure to succeed!
Image via Unsplash
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