Global Franchise 9.1

Build franchisee resilience There are many proven business strategies to build resilience for future security, but franchising has a distinct advantage – its unique model. “Franchisors should be encouraging their franchisees to follow their own proven systems, as they’ve often spent years perfecting operational processes, business planning, sales and marketing tactics, staff training and development, customer service levels, sharing best practice between franchisees and embracing innovation,” advised Julie Wagstaff, MD of ActionCOACH UK, the world’s number one business coaching franchise. But while they should take advantage of all the support on offer from their franchisor, franchisees must also be held accountable for the success of their own business. “Franchisors should be encouraging their franchisees to adopt a strategic mindset, to keep their finger on the pulse of local markets, and to focus on core areas to build a resilient business,” she continues. “This includes regularly reviewing financials, operations and market trends and managing cash flow carefully. Using forecasting tools and keeping cash reserves for unforeseen expenses is critical to any business’s ability to withstand shocks.” Julie also urges franchisees to network with other business owners and professionals outside the franchise network. “While sharing best practice within your network of fellow franchisees is fantastic, new collaborations can open more channels and opportunities for growth and stability,” she advises. Avoid reputational damage While franchising systems provide many advantages, there’s one obvious risk for a franchisor that other businesses don’t have to deal with – its network of franchisees. “The most common crises I’ve seen resulting from the actions of a franchisee is where they manage to hide things going wrong operationally and financially in the business rather than asking for support in the early days of difficulties,” explains crisis communications specialist GLOBAL-FRANCHISE.COM 65 LESSONS LEARNED FROM SURVIVING RECESSION As CEO, Ray Titus navigated Signarama through 2008’s devastating global financial crisis. He shares his takeways from surviving this difficult patch: 1 Stay positive with everyone, even when times are terribly negative. 2 Get back to basics and what made you successful. Sales are the key. 3 Focus on cutting unnecessary spending – every little bit helps. 4 Calm down and don’t rush into making a bad decision. 5 Review your assets. Consider borrowing against them, or selling some. 6 Promote the success stories. 7 Get face to face with all your customers and leads. 8 Speed often wins. Make incisive decisions. 9 Review all expenses weekly and negotiate everything. 10 Work closely with your CFO. We met every day!