The Business Model
Experience tells me that in either case the biggest problem facing you is just juggling all of the balls on a daily basis, getting customers, fulfilling orders, issuing invoices, chasing and receiving payments etc. And all of that without even talking about coping with legislation, regulations, tax and so on. Then once you start to employ people the challenges only get bigger and more complex.
So how can you minimise problems right from the start and ensure that the business starts, grows in the right way and achieves what you wanted it to do? Just look at some of the most successful businesses Worldwide McDonald’s, UPS, Subway, you might notice a pattern, they are all franchise businesses.
In fact around 80% of businesses that are set up by people buying a franchise survive the first 5 years, which is radically more than conventional businesses. Statistics show that 3 to 4 out of 5 non franchise businesses who do not ensure that they receive advice or training don’t even survive their 1st year.
So what is the secret of success for the franchises? Well they all begin with the premise that they want to systemise every aspect of their business so that the owners can concentrate on ‘working on the rather than in the business’. These corporations produce a manual that details how everything is done in the business and is done consistently, nothing is left to chance. Not only that but the philosophy of the corporation is written through the business like a stick of rock and the culture of the business is maintained by everyone within it.
Just go to a McDonald’s anywhere in the world and everything is consistent, the size of the buns, the mix, flavour and size of the burgers, even how long they are cooked on each side. When all of the component parts of a ‘Big Mac’ are assembled the pickles are placed in such a way that they don’t drop out onto the customers lap. Where ever you go the person serving you says “do you want fries with that”? Did you know that all of the people who purchase a McDonald’s franchise go to their own Hamburger University before they are let loose on the business world.
Your Route to Success!
Here is where I make a radical suggestion to you! You need to take the same approach design the winning formula into your business right from the start. Build systems and how you run the business with everything designed so that even an inexperienced 16-year-old can be dropped into a job or process and do the work to a consistently high standard.
Your customers will love the fact that they always get what that wanted at the same standard in the same way that they expected and wanted If you work this way from the start then you will ensure that you can give the time and attention to ‘work on the business’ and grow it. If you don’t then I can pretty much guarantee you will spend more time fixing the business and working in it than sitting back and enjoying growing your business.
For advice and guidance on simple and inexpensive ways to build these processes into your business please contact me today.
Please comment about your experiences