Owning a business used to be a lot different.
You’d collect money from your cash registers at the close of business, rubber-band your receipts, print out your credit card transactions, total things up, and then drop everything in the safe until morning. Pretty basic stuff.
Not to mention payroll; the weekly time-suck of collecting employee time-cards that were almost always riddled with mistakes (employees punching in-but forgetting to punch out, etc.), and having to chase them down to get the correct hours.
My how things have changed!
Technology Rocks!
Technology has impacted franchise businessesand franchisees in powerful ways.
But today’s franchisees need to know how to use this technology effectively. And that’s where the franchisor comes in.
Technology Training
When you buy a franchise, including paying your upfront franchise fee and signing your franchise agreement, a lot of things are set in motion. One of them: training.
Soon after officially becoming a franchise, you’ll be scheduled for training at franchise headquarters. (Some franchisors even have you do a few weeks of pre-training, using online technology.) In short, during training you’ll be taught how to open and run your new franchise business. Included in your training will be a deep-dive into all the technology you’ll have access to as a franchisee. Technology, that in a lot of cases, will prove to be more valuable than you ever imagined.
Technology In Franchising
There are several types of technology that franchisors use. Here are a few examples.
Point of Sale Systems
Today’s Point of Sale (POS) systems offer way more than totaling the day’s receipts. The more advanced systems can:
- Process credit card/debit payments
- Update inventory after each sale
- Maintain customer databases
- Help with advertising promotions
- Backup data to the cloud
- Create dozens of customizable reports
- Maintain customer databases
And more.
CRM Systems
Most franchisors have their franchisees use a Customer Relationship Management (CRM) system. CRM systems are super-important for franchisees.
That’s because they enable franchisees to quickly gather a customer’s contact information, note what they purchased, note customer service issues, and have all that information available instantly, when needed.
In addition, automatic reminders can be set up, so customers can receive information about upcoming promotions and events-which can lead to revenue opportunities for franchisees.
Online Marketing Technology
If you’re thinking about becoming the owner of a franchise business, you’re going to have to get involved in marketing your business.
The old days of sending out advertising flyers a few times a year, and maybe even splurging on radio ads to bring in customers are over. (Although they can still be used sparingly.)
To begin with, you have way more marketing and advertising options.
Not only that, you have a lot more competition in the marketplace.
From a consumer’s point of view, it can be a bit overwhelming at times. So many choices. So many marketing messages being hurled their way.
That being said, it’s crucial for you, as a franchisee, to have a solid online marketing program. And it should come from your franchisor.
In most cases, you’ll be provided with a website. Most of the time, your website will be managed by headquarters, so they’ll be the ones investing money in online marketing technology that helps your website get found, locally. But social media marketing may be a different story.
At a minimum, you’ll need to have a Facebook Page for your business. Your franchisor may set it up for you, but you may have to manage it. (It depends on the franchisor.) If so, you’ll need to spend time learning how to leverage the reach Facebook has. (Facebook offers free tutorials.)
Once you do that, you’ll want to explore ways to post to your Facebook Page, automatically. (Which will save you time.)
Other social media platforms like Twitter, LinkedIn and Instagram may be in your franchisors marketing mix, too. Learn what you can about them before you open your new business.
Technology has come a long way.
Make sure you find out how your franchisor utilizes it at the franchisor and franchisee level.
Doing so will help you determine if their technology is one of things that can give you a serious leg up on your local competition.
The Franchise King®, Joel Libava, is a top franchise expert. He’s written over 2,000 different articles on franchise ownership and personally consults with people who are looking to buy a profitable franchise. Go here to find out how The Franchise King® can help you become your own boss.