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When it comes to emergencies in your franchise, the adage is true: hope for the best, but prepare for the worst. No one wants a business crisis, but sometimes it happens. It will happen. You just don’t know when. No one’s business plan included pandemics, after all.
So what can you prepare for now?
First, understand what types of things franchisors can assist with. Internal software glitches, for example, are experienced across their network of franchise users. Strange things happen unexpectedly, and knowing which situations have built-in support will help you plan for those you need to manage independently.
The most common business emergencies are just that—urgent situations related to running the business. Yes, you may need to have CPR and first aid refreshers for yourself and your staff, but the most common problems that will cause stress include these four types of emergencies that can throw a franchise unexpectedly off-track.
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#1. Nature and Power Conspire
With the latest glut of unpredictable weather, the Department of Homeland Security suggests several preparations for a natural disaster. Mother Nature’s sense of humor comes at our expense, and you seldom know what or when it will be.
To give you an example, I live in Southern California, where the weather is sunny and 70 year-round, and rainfall is limited. Yet, in 12 months, our business experienced waist-high flood waters that nearly destroyed a fleet of luxury vehicles. And then a multi-state power outage brought two states to a full, dark stop. We transported executive travelers, but nothing was working for hundreds of miles. Not airports, cell towers, gas stations, or payment systems. Nothing. Just give the DOHS site a look to start your preparations.
Whatever the possibilities are for grid failures and disasters, you want to prepare for as many resources at your fingertips as possible to diffuse a chaotic and potentially threatening situation. A franchisor will help if possible, but often, little can be done unless you rely upon yourself and prearrange generators and backup systems.
#2. Data is Lost
Most franchisor sales systems are well-structured and backed up, but what about your desktop with your financial records or email marketing lists? Data loss is less common than it used to be, but it still wreaks havoc on a business.
Prepare a data recovery plan supported by IT professionals who know your system. Better yet, work to have duplicity for all your records. Maybe it’s as simple as external hard drives stored off-site and cloud storage for a fee.
Doing the research now so that your downtime is limited and your actual loss eliminated as quickly as possible. And since nearly half of all users lose some data every year and 60% of businesses fail within six months of data loss, you should be running to a backup service for support before you need it.
#3. Payroll is Short
Payroll is a continual worry for small and growing franchises.
Sometimes, a single unpaid invoice or a slow week (or a power outage) will mean the difference between having enough money in the bank. Delaying payroll until a client pays is not an option. Businesses have a legal obligation to pay employees in full and on time. If you’ve ever experienced this gut-wrenching situation, then you already know that having available funding is a savior.
In addition to operating loans and payroll companies, business credit cards offer programs that even out cash flow based on collectible, earned revenue. Pre-plan your backup now, so you can sleep at night and not worry about angry employees and state regulators knocking on your door.
#4. The Books Reveal Something is Wrong
Accounting is supposed to be an exact science.
If you do it yourself, though, you know there are times when something doesn’t look right. Maybe there is employee theft, or maybe you made a simple error. The key here is not to wait. Get an experienced external accounting service to help you. It may cost more than you’d like, but it will provide the prescription you need to uncover the problem and avoid it in the future.
We cannot foresee every possibility or crisis, but we can do our best to prepare for them. Back-ups can be scheduled, bookkeeping can be fixed, and vehicles can be moved to high ground in bad weather. Because unexpected challenges do occur, reduce their negative impact by being prepared for the most common emergencies that your franchisor doesn’t cover.
Anne Daniells is a co-owner of Enterprising Solutions, a professional services firm specializing in corporate communication and financial improvement for businesses where she shares decades of corporate and entrepreneurial experience—including franchise ownership—in her writings on business culture. She has authored hundreds of articles for publications including AllBusiness.com, TweakYourBiz.com, and MSN.com. Reach out via her website for more on where corporate culture, communication, and human architecture collide.