Look around the local shopping centre, and it is almost impossible not to spot all the franchises that are popping up everywhere. Franchises can be best described as a form of business that merges the scale of the major corporations with the management of a small business. It offers operators the support and security, while still maintaining the control of the business in their own hands. Of course, for the convenience and features that the franchise offers, the owners must pay a fee, as well as face all the risks and problems that come with any small business.
The biggest advantage of a franchise is that it decentralizes the management of operation of the business, which cuts down on a lot of the operating and organizational costs of the big companies. Franchise owners can adapt their business to better suit their locality and environment while still operating under franchise structure.
The success of the franchising business has seen similar models developed extensively in the service and retail industry. Key markets include the food and beverage industry, with a traditionally strong focus on fast food and coffee. In retail, this extends to the mobile phone and computer businesses, while in the service industry, there are many gardening and pet care franchises also available for sale. The most interesting development of the franchising concept is that it has also extended to the banking and finance sector, changing the perception that franchises can only operate in the framework of a small business.
Are you working for a business and considering setting up your own operations? Are you a business that can benefit from catering for the franchising industry? The fact is, franchising is becoming a dominant force in the service and retail market, and it could very well be the new way businesses in other industries operate in the future.
Don't Cut Costs Increase Value
Businesses today appear obsessed with cutting costs. Whether it is to keep the shareholders happy, keep the accountants happy or keep the bank happy, this unhealthy obsession is giving the industry sector a very bad reputation for penny pinching. What happened to the good old adage that you have to spend money to make money?
If you keep your workers happy, they will be more productive. If you keep your customers happy, they will keep coming back. Never mind those people who take advantage of your generosity, because what comes around definitely goes around. Like a solid stock market portfolio, you want to constantly get rid of the bad stocks, and accumulate the good blue chip stocks. The same principle applies to your workers and customers. If you keep hiring people who will work for less, does it seem logical that your productivity will keep increasing. If you spend less time with your customers, do you think they will spend more time with your business?
If this seems like a good dose of common sense, then just take a look around you. The business sector is becoming less and less personalized. The Internet has put us closer to people far away from us, but further away from those close to us. Just because we can send someone an email or a text message doesn't mean we shouldn't take the time to talk to them. Just because the customer has already bought something, it doesn't mean we shouldn't see what else we can do for them.
Look at your business practices. Do they cut costs at the expense of cutting value from your operation? Instead of trying to minimize your expenditure, why not look at maximizing the value of your business? It may be difficult to cut costs to your business, but it is very easy to lose value in your business.
