Franchises enjoy several crucial advantages over independent businesses, most notably name recognition. When customers want to spend their money on goods and services, they're more comfortable doing so in a familiar setting. That's the fundamental idea behind brand loyalty. With multiple locations, franchises have the potential to achieve customer satisfaction in spades, and a business rich with happy customers never has a reason to complain.
That said, past success is never a guarantee for the future, regardless of what industry a person works in, franchise or otherwise. However, a few simple managerial strategies can help franchisees who want to improve their chances of sticking around for the long haul.
"Workers matter, and so does preventing systemic turnover."
Hire across generations
Stocking up on trustworthy employees from a franchise's onset and training them well establishes an important tone: Workers matter, and so does preventing systemic turnover. All businesses should invest in a dynamic workforce to enhance their human capital.
One area of diversity, however, often goes overlooked. A multigenerational staff brings value and insight in ways other hiring decisions can't. Typically, companies recruit millennials and Gen Xers for their vigor and commitment to emerging trends as well as technology. Moreover, businesses seeking field experience and professionalism hire baby boomers and older groups, according to executive recruitment consultants Parker and Lynch.
But keep in mind, the worth of a multigenerational staff doesn't wholly reside in what each supposedly brings to the table. Instead, diversity leverages the strengths of one group against the weakness of another, growing cooperation organically out of mutual understanding and respect. A business can practically run indefinitely on that positive energy alone.
Optimize rebound effect
To err is human, and for better or worse, every business has its fair share of erring humans, especially in upper management where the stakes are highest. Weeding out preventable mistakes undoubtedly gives any company small or large leaner operations and greater earning potential, but those aren't the kind of make-or-break moments that truly put a business to the test. Rather, how a business bounces back after a big hit matters most.
Entrepreneur interviewed franchisors Jason Griggs and Matthew Cubbler, who partnered and invested in their combination fitness program and gym, only to watch the entire enterprise collapse when they tried to open new locations prematurely.
"We had a choice," said Griggs, president and CEO of MaxOut Strength Studio. "We could let this thing go, or we could take the things we did really well, consolidate, rebuild the brand and reemerge."
Like Griggs and Cubbler, any franchisee who falls on hard times should be ready to rely on the aspects of their business that are strongest instead of exclusively focusing on his or her mistakes.
Equipment and franchise industry piece brought to you by Marlin Equipment Finance, a nationwide provider of commercial lending solutions for small and mid-size businesses. Marlin's equipment financing and loan products are offered directly to businesses, and through third party vendor programs, which include manufacturers, distributors, independent dealers and brokers in the security, food services, healthcare, information technology, office technology and telecommunications sectors.