As a franchise owner, you may already feel you hit the jackpot. After all, you started your own business, and your success is in your hands. Many business owners want to go to the next level to scale business and start growing beyond their wildest dreams. Rick Mayo (Alloy Founder and CEO)shares the right way to scale business for rapid growth.
The question is how?
Scaling your franchise business for rapid growth involves some unique considerations. In this blog, we’ll discuss how to reach new heights of franchise ownership and grow an empire you can be proud of.
5 Ways to Scale Business
Whether you’re a new franchise owner or a serial entrepreneur, these tips can help you grow your business and your bottom line:
1. Hire More Employees
Hiring more employees is a great (and obvious) way to grow your franchise.
If your business is growing to where you can’t accept new clients or you’re finding it challenging to meet demand, hiring more employees is a great way to keep people coming in the door.
How do you know when the time is right to hire more employees?
- Key Employees are Spending High Value Time on Non Essential Tasks
- Customer Service Is Suffering.
- Your Staff Is Overworked and Turning Business Away
- Can You Afford to Hire More Employees and Benefit from Increased Productivity?
The ideal time to onboard new employees should be when your financial situation is stable enough to support the extra costs of hiring a new employee. Consider all the costs of hiring a new employee, including the additional benefits and the training costs of hiring a new employee. The best time might be the end of your first year in business, after three years, or somewhere in the middle. And, since adding employees ultimately helps you grow your revenue, this simple tip is key to scaling effectively.
2. Add Additional Revenue Streams
Another smart way to scale your franchise is to look for additional revenue streams. For example, a gym may consider adding a smoothie bar or an apparel shop.
Other companies may look for other marketing opportunities or products they can introduce. No matter what path you choose, adding an additional revenue stream is a great way to expand your offerings and grow your business. You might want to read this article Keep The Main Thing, The Main Thing, to make sure you are always considering your primary mission and not just adding on extra services or products that would be counterproductive to your business strategy.
3. Double Down On Your Brand Differentiators
One of the biggest mistakes people in the franchise industry make is to assume that there’s nothing that sets their franchise apart from competitors. This is a dangerous (and costly) error.
To scale your business effectively, you need to know what you do better than everyone else. If you want to boost your revenue and grow your bottom line, get serious about identifying what you and your team are the best at.
Maybe your personal training is unparalleled, or you have the highest customer satisfaction rate of anyone in your area. Perhaps you’ve introduced a groundbreaking new product, or they know you for a specific class or offering. In Alloy’s case, we created a better personal training model that has generated higher member satisfaction, resulting in a 97% retention rate, higher customer lifetime value, and more revenue per square foot generated than other fitness businesses..
Whatever the case may be, zero in on your value-add and make it a big part of your marketing and messaging. When you can speak directly to people who are interested in what YOU offer, you’ll attract more qualified leads, onboard more new customers, and carve out a niche for yourself, your team, and your business.
4. Don’t Overlook Organic Growth
It’s easy to think that growing a franchise involves a lot of components you pay for, like marketing, advertising, employees, equipment, technology, etc. But it’s important not to overlook organic growth of your leads and customers from your community..
In the first year of your franchise, pay close attention to organic reach and contact development. Get involved in your community.
Think of this as a time of adding value and promoting awareness. By focusing on organic contacts, you’re making yourself an authentic and valuable part of the community and identifying potential customers who will support your efforts early and often.
5. Adopt A Growth Mindset
As a franchisor, adopting a growth mindset is key to winning the game. After all, owning and operating a franchise can be tricky. While it provides tons of business support, benefits, and the opportunity to be your own boss, it also requires lots of grit, hard work, and dedication.
Besides investing your time, money, and effort into running and growing your new business, you must also accept accountability for the successes and failures of your franchise and keep pushing toward growth, no matter what.
Tips for Adopting A Growth Mindset:
- Embrace challenges to create opportunities for your business.
- Learn from failure, but get right back out there and improve the business.
- Have faith in your team and your business model .
- Identify business success stories that inspire and motivate you.
- Practice continuous learning, education, and information-gathering.
- Accept, embrace, and leverage constructive criticism. Ask questions and listen.
While developing a growth mindset isn’t an overnight effort, it is critical to running a high-growth franchise. Create a culture of growth for yourself, and your team and business will follow. Check out how Alloy’s success resulted in being named one of the Top Disruptive Franchises.
Bonus: Get Help From Your Seasoned Franchise Experts
A great franchise brand and strong entrepreneurial work ethic aren’t the only things necessary to becoming a successful franchisee. To tip the scales in your favor, take advantage of all the marketing, growth, and business coaching available to you through your franchise parent company.
The more you work with seasoned experts in your field, the more likely your business will be to succeed and grow in the years to come.
Rapid Growth is Just Around the Corner
As a franchise owner, the sky’s the limit regarding growth. If you can imagine it, you can do it. While building a high-growth franchise isn’t for the faint of heart, it is an exciting and rewarding experience that will pay dividends (literally and figuratively) well into the future.
By working with experts, analyzing what makes your brand different, embracing a growth mindset, onboarding dedicated new team members, and focusing on organic reach, you can quickly build your franchise empire to sustain you and your family for years to come, and that will allow you to create the business of your dreams.
Here at Alloy, we pride ourselves on helping franchise owners succeed. Click here to learn more about the Alloy opportunity or how we support Alloy owners.
Article by: Rick Mayo
Also read Rick’s article: What Are The Benefits Of A High-Growth Franchise Brand?
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