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7 things that can send a franchise broke - Webinar
 

7 things that can send a franchise broke - Webinar

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In 2013 we asked hundreds of people the BIG question: "What sends a franchise broke?". In a Webinar held on 27 February 2014 we gave the results. These slides summarise the 7 Things, and some tips to ...

In 2013 we asked hundreds of people the BIG question: "What sends a franchise broke?". In a Webinar held on 27 February 2014 we gave the results. These slides summarise the 7 Things, and some tips to help avoid them.

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    7 things that can send a franchise broke - Webinar 7 things that can send a franchise broke - Webinar Presentation Transcript

    • WELCOME… Today’s webinar will begin at 11am Sydney time WHAT WE’LL COVER… Presenter Kate Presenter Peter • What are the ‘7 Things’? • How to identify risks • Practical business tips This material may not be reproduced without permission www.smartfranchise.com.au 1
    • GETTING TO KNOWYOU www.smartfranchise.com.au 2
    • Poll #1 www.smartfranchise.com.au 3
    • THE ‘7 THINGS’ SURVEY Why we did it www.smartfranchise.com.au 4
    • There are significant costs when a business has financial difficulties    Financial Time Human www.smartfranchise.com.au 5
    • THE ‘7 THINGS’ SURVEY How we did it www.smartfranchise.com.au 6
    •    1,100 people invited Written responses Varied backgrounds • Accountants, Insolvency Practitioners • CEO’s, Senior Managers, Field staff • Franchisees • Lawyers, Bankers www.smartfranchise.com.au 7
    • INSIGHTS • Identified 7 key themes • Produced a report APPLICATION • Workshops • Business Tools www.smartfranchise.com.au 8
    • HERE THEY ARE .. The 7 Things that can send a franchise broke www.smartfranchise.com.au 9
    • #7 NOT RESPONDING TO CHANGE www.smartfranchise.com.au 10
    • “They still do the same things that worked for them prior to the GFC... …the market has changed significantly since then.” www.smartfranchise.com.au 11
    • • Consumer behaviour • Competitors • Costs • Regulations • Demographics • Business finance (availabilty, cost) • Your personal situation www.smartfranchise.com.au 12
    • #6 DIFFICULT CHILDHOOD www.smartfranchise.com.au 13
    • No matter how much due diligence you do… Reality turns out different from what you expected. www.smartfranchise.com.au 14
    •  Financial results different • Cashflow • Costs • Profit  It’s not easy to run a business! www.smartfranchise.com.au 15
    • #5 LACK OF BUSINESS RIGOUR www.smartfranchise.com.au 16
    • Poll #2 www.smartfranchise.com.au 17
    • People don’t usefinancial information the way we think they do. www.smartfranchise.com.au 18
    • “I really don’t understand what the accountant is saying to me.” “…It’s expected they know this stuff, but no one shows them or explains it.” www.smartfranchise.com.au 19
    •    Hold regular business meetings Have up to date financial info Use financial & non-financial information www.smartfranchise.com.au 20
    • #4 PEOPLE DO ‘CRAZY THINGS’ www.smartfranchise.com.au 21
    • “They’re mad..! They spend all their money on toys!” www.smartfranchise.com.au 22
    •     Improve daily lifestyle Take a holiday Buy a new house, car, bike, boat Invest in shares, property, 2nd business www.smartfranchise.com.au 23
    • “Extra commitments taken out against the business in good times… …cause financial stress in a downturn.” www.smartfranchise.com.au 24
    •    Financial commitments increase Additional financial burden makes business harder There’s an impact on: • Marketing & sales • Service • Costs • Morale www.smartfranchise.com.au 25
    • #3 NOT ENOUGH SALES www.smartfranchise.com.au 26
    • Poll #3 www.smartfranchise.com.au 27
    • “Any person in business is selling something. …Most people have little or no training - or experience - in this area.” www.smartfranchise.com.au 28
    •      Over reliance on marketing Don’t know how to sell Don’t know how to teach people to sell Staff not trained Staff turnover www.smartfranchise.com.au 29
    • #2 PRIDE &EGO www.smartfranchise.com.au 30
    • “I can sum it up in one word…Pride” www.smartfranchise.com.au 31
    •    Business owner wants to be successful Things don’t always go as planned Don’t know who to talk to, or how • Might feel embarrassed • Not sure what to do  So they put off the conversation www.smartfranchise.com.au 32
    •  Pride can • Blind us to weaknesses or threats • Stop us from listening • Stop us from taking advice  But we all need help sometimes! www.smartfranchise.com.au 33
    • #1 CAN’T PAY THE BILLS www.smartfranchise.com.au 34
    •    Income too low Costs & expenses too high Didn’t see upcoming commitments www.smartfranchise.com.au 35
    • That’s why it’s so important to LOOK AHEAD! www.smartfranchise.com.au 36
    • Activity Current Financial Position $ www.smartfranchise.com.au 37
    • Tomorrow’s Actions Future Financial Position $ www.smartfranchise.com.au 38
    • WHERE ARE THE RISKSIN YOUR BUSINESS? www.smartfranchise.com.au 39
    • Poll #4 www.smartfranchise.com.au 40
    •        Not responding to change Difficult childhood Lack of business rigour Doing ‘crazy things’ Not enough sales Pride & ego Can’t pay the bills www.smartfranchise.com.au 41
    • SMART FRANCHISE TIPS www.smartfranchise.com.au 42
    • 1. 2. 3. 4. Know where you want to go Set sales targets Hold regular business meetings Monitor financial results monthly www.smartfranchise.com.au 43
    • QUESTION TIME www.smartfranchise.com.au 44
    • www.smartfranchise.com.au www.smartfranchise.com.au 45