Ready to make the move to a multi-unit franchise? Here are some tips.
Maximize your multi-unit franchise.
Expanding your franchise to multiple locations can offer opportunities for increased efficiencies and greater revenue. You can take the expertise you’ve gained through running a single franchise and apply it to new locations. But it also comes with some challenges. Here are some tips from a successful Schlotzky’s Deli franchisee for making multiple locations work.
- 1. Take advantage of all the resources available to you.
Be sure to educate yourself regarding the opportunities available to you as a small business owner. The U.S. Small Business Administration offers loans that can help you invest in new equipment and locations. Other programs offer subsidies for initiatives such as alternative energy.
- 2. Own rather than rent.
Consider purchasing land, building your building, and buying your equipment rather than renting an existing building. You can consolidate your borrowing and lower your payments – which leads to cost savings and increased profitability in the long run.
- 3. Gain efficiency through expansion.
You may find that the revenue from a single franchise location doesn’t support the cost. One solution may be to add a second franchise brand to the location. Not only can it generate additional revenue, it can also help manage seasonal highs and lows and even out cash flow.
- 4. Take good care of your employees.
Your employees can be your greatest asset – and your greatest expense. Success is all about retaining your best people. Turnover is expensive – it’s costlier and less efficient to regularly train new employees than it is to retain good ones. So train your people well, and retain them with competitive wages.
Financial management presents another unique challenge for a multi-unit franchise. You need to manage the finances for your entire franchise business, but each of your franchises needs the ability to operate as an individual unit. Multiple locations and multiple information sources make it hard to see the big picture.
The Scholtzky’s owners turned to Sage Intacct to maximize efficiency and visibility across their franchise operation. Sage Intacct’s cloud-based solution eliminates challenges such as duplicate data entry, paper-based manual processes, lack of timely reporting, and the need to manage information from multiple disparate sources. With Sage Intacct, you gain a comprehensive view of your entire franchise business – and can still provide your individual franchises with critical information about their financial performance. Location-based KPIs and customized reports mean you gain the financial insights you need to make strategic decisions. And Sage Intacct integrates easily with your other business systems and gives you real-time access to vital information whenever you need it, wherever you are.
Want to know more about how Sage Intacct can help you take your franchise business to the next level? Call MicroAccounting today at 855-876-3773.