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We are learning a new dance with a virus that does not keep time. It is a herky-jerky interaction, to say the least. Each week seems to bring a new pace, a new beat to follow, a new way to proceed with uncertain timing. As we stumble through, the franchise industry is continually collecting data across franchise sectors, and survey responders are becoming clearer about how the future looks for their franchises.
For those franchisees who anticipate a longer time to fully reopen, the dance has become more of a dance marathon, with exhausted participants who have difficulty knowing when the end of business limitations will come. If you are one of these, it is time to change up your steps—time to pivot to a different style or change the music. Your post-pandemic plan means learning new routines and/or reevaluating your steps.
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1. How can my franchise change to remain healthy in the short term and the long term? Look at vertical offerings or horizontal market expansions to diversify your position and spread your risk. Remember that the change might be temporary but could be worth the investment to tide you over. Or it could be a long-term shift in processes, routines, marketing, or scheduling.
2. What would you have changed if you had your current knowledge when you opened your franchise? There were many days in business and franchise ownership when I wished for everything to stop for just a few days. I wanted to use those days to streamline operations and improve procedures. No one foresaw a pandemic as the answer to that plea, but this time can be a blessing if it is used well.
3. What are three (or more) possible options for the foreseeable future? Confidently approach various scenarios, but carefully protect yourself with Plan B (and C and D). We do not know what will change in the next few months or even year. Consider where you were in early March and how you can get yourself back on a profitable trajectory. Nothing is off-limits here.
4. What areas have been costly and could possibly be renegotiated? From royalty fees to space rental costs, there are opportunities for cost reductions. Contracts can be renegotiated and locations can change for the better. A penny saved is truly a penny earned that goes straight to the bottom line, so be bold. Everyone is impacted and is more open than ever to fresh ideas and different structures.
Limitations on business operations have impacted every part of franchising, from the franchisor to the local franchisee. Franchise newcomers and old-timers alike need to learn new dances. The post-pandemic business reprise will be better if you can avoid being injured when the virus steps on our toes and changes our franchise operating tunes. What steps will you take?
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.