7 things that can send a franchise broke - Webinar

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


2

Poll #1


3

THE ‘7 THINGS’ SURVEY
Why we did it


4

There are significant costs when a business has
financial difficulties





Financial
Time
Human


5

THE ‘7 THINGS’ SURVEY
How we did it


6






1,100 people invited
Written responses
Varied backgrounds
• Accountants, Insolvency Practitioners

• CEO’s, Senior Managers, Field staff
• Franchisees
• Lawyers, Bankers


7

INSIGHTS
• Identified 7 key themes
• Produced a report

APPLICATION
• Workshops
• Business Tools


8

HERE THEY ARE ..
The 7 Things that can
send a franchise broke


9

#7
NOT RESPONDING
TO CHANGE


10

“They still do the same things that worked
for them prior to the GFC...
…the market has changed significantly
since then.”


11

• Consumer behaviour

• Competitors
• Costs
• Regulations
• Demographics
• Business finance (availabilty, cost)
• Your personal situation


12

#6
DIFFICULT
CHILDHOOD


13

No matter how much due diligence
you do…
Reality turns out different from what
you expected.


14



Financial results different
• Cashflow
• Costs
• Profit



It’s not easy to run a business!


15

#5
LACK OF
BUSINESS RIGOUR


16

Poll #2


17

People don’t usefinancial
information the way we think they
do.


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.”


19






Hold regular business meetings
Have up to date financial info
Use financial & non-financial information


20

#4
PEOPLE DO
‘CRAZY THINGS’


21

“They’re mad..!
They spend all their money on toys!”


22







Improve daily lifestyle
Take a holiday
Buy a new house, car, bike, boat
Invest in shares, property, 2nd business


23

“Extra commitments taken out against the
business in good times…
…cause financial stress in a downturn.”


24





Financial commitments increase
Additional financial burden makes business
harder
There’s an impact on:
• Marketing & sales
• Service
• Costs

• Morale

25

#3
NOT ENOUGH
SALES


26

Poll #3


27

“Any person in business is selling
something.
…Most people have little or no
training - or experience - in this area.”


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


29

#2
PRIDE &EGO


30

“I can sum it up in one word…Pride”


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


32



Pride can
• Blind us to weaknesses or threats
• Stop us from listening
• Stop us from taking advice



But we all need help sometimes!


33

#1
CAN’T PAY
THE BILLS


34






Income too low
Costs & expenses too high
Didn’t see upcoming commitments


35

That’s why it’s so
important to
LOOK AHEAD!


36

Activity

Current
Financial
Position

$


37

Tomorrow’s
Actions

Future
Financial
Position

$


38

WHERE ARE THE
RISKSIN YOUR BUSINESS?


39

Poll #4


40











Not responding to change
Difficult childhood
Lack of business rigour
Doing ‘crazy things’
Not enough sales
Pride & ego
Can’t pay the bills


41

SMART FRANCHISE
TIPS


42

1.

2.
3.
4.

Know where you want to go
Set sales targets
Hold regular business meetings
Monitor financial results monthly


43

QUESTION TIME


44



45

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