Prepping Your Business for Upcoming Challenges
The economy is always changing, and after the effects of Covid-19 on the world, many multi-unit franchise owners are unsure how to create strategies to grow and protect their business. As succession planners, we are frequently asked by multi-unit franchisees how to prepare for an impending recession, talent shortages, and adjustments to their growth strategies.
Preparing your business for the future depends on whether you want to risk and invest more or pause and reflect on current processes and strategies.
Jeff Bannon, a succession planner with The Rawls Group, said, "People who worry about getting money or capital, the best thing to do is hold your cards and ride it out if you can. But, on the other hand, for people who want to be a little more aggressive and want to take some risk and have a longer view, the thing is to maybe buy things or look for things to buy at a price that is a little better than the past."
Keep in mind that not every business is making the same choices and there are no wrong choices, just the choice, and plan that works best for your business. Continuing to expand is great, but sitting back can be just as beneficial in making sure plans and people are in good positions to keep moving forward.
Protecting and growing your business depends on whether you plan to hit the gas pedal or tap the brakes. Protecting the business is essentially ensuring everything is in place, such as processes, people, and financial capital. There is also a big emphasis on people in terms of protection and growth, as a business's future cannot depend on one person. A self-centric company and system will not preserve or continue to grow until more people are involved. "There are three components to growth: people, processes, and financial capital. Most successful entrepreneurs have processes and capital right now," said Bannon.
People are the most challenging part of growth because hiring and keeping the right people takes time and money. The key is to invest in the people who want to grow, to hire internally, and give people opportunities for growth. Michael Einbinder, an attorney with Einbinder and Dunn, said, "What you need to do is incentivize people to care about what they're doing and want to stick it out through whatever the next step in the business is, whether it's selling or growing, and most of that, but not all of it, is compensation."
Set out processes and ensure your key staff are aware they are a part of the plan to maintain control over unexpected difficulties. They need the motivation to stay and grow within the business, and that motivation could come from various sources, including a competitive salary, benefits, and work-life balance. Communication is crucial as individuals need to have a sense of stability and upward mobility within the organization, mainly if that future involves growth and the possibility of becoming the organization's next great leader.
Listen to the conversation series focused on "Succeeding Despite Economic Uncertainties."
Kendall Rawls knows and understands the challenges that impact the success of a family-owned business. Her unique perspective comes not only from their educational background; but, more importantly, from her experience as a second-generation family member employee of The Rawls Group - Business Succession Planners. For more information, visit www.rawlsgroup.com or email firstname.lastname@example.org.
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