Do you own a business? Have you expanded it into a multi-region franchise but can’t see the profits? If that’s the case, understanding the impact of FMS on your franchise life cycle can be the key to accelerate it into a sustainable business with extended profits. The following article will guide you through a franchise life cycle and the implication of franchise software in it.
When Is The Right Time To Get Franchise Management Software?
Understanding Franchise Life Cycle
Similar to a business model, the franchise life cycle is also accumulated with a bulging graph constituted with highs and lows. A simple division would be:
- Immature/Underdevelopment – This is a very brittle stage, comprising of you, ideating the notion of running a franchise. It can range from establishing a new business or expanding an existing business into a franchise. Realizing the risks involved, investments, competitions and more, you take your first step here. This is a step you must have already taken.
- Business Building – Once the business is established, you now expand, train and guide the franchisees. Marketing, management, operations, and logistics are all set in place.
- Development and Growth – This stage tests your preparation and strategies. If you have a strong support team, infrastructure, inventory, and a franchise operation software among other components, your business will witness a significant hike here. Even if you own an FMS here, is it giving you the best output?
- Maturity – Finally, after years of work and practice, your business at this stage blossoms into a recognized brand. Established, running successfully and pouring constant profits are some of the key features of this stage. However, if your profits are not progressing the way you want even after strong manpower, wrong FMS integration can be the problem.
Integrating of FMS
After you have learned the franchise lifecycle, an important factor to include is franchise management software. It is not news that without the support of an FMS, franchise operations and management can pull down your profits and expansion plans. Yes, you know that. But were to imply a franchise management software is something you must have not thought about.
Deploying franchise management software at the right time is, in most instances, crucial. Too early and you will be wasting your money. Too late and you will not make the most out of the software. So when do you use it?
The best stage for your franchise to have an FMS is during the “Building Stage”. While at the initial stage, you can work on the FMS model that suits your franchise goals, at the second stage you can start using the FMS. Reasons to do so:
- An increasing number of franchisees – tracking their development, staff management, and building inventory, keeping a track of your subordinates becomes crucial.
- Tracing progress and leads – the right FMS will help you track performances of each franchise and display information on areas of core leads. This will in term help you invest right.
- Reports and data management also increase for which you’ll need one-stop support that only an FMS can provide.
- CRM implication – Your CRM should also compliment your franchise for you to get the best out of your business. All the data that flows through your business should be incorporated and established in one CRM. A good CRM will help you generate more leads and expand exponentially.
These along with other features of an FMS can be incorporated at the “Building Stage” of your business. As your franchise grows, you will be able to gain more insights and get a better understanding of FMS. And before you know it, you will be managing all your franchise like a pro.
But if you have got your FMS wrong during any of the stages, a shift can be incorporated at any time. If you are at the “Maturity” stage and there is an FMS that is better and more compatible with your business, adapting it into your system can be proven beneficial.
Now that you know the stages in a franchise life and the implication of FMS in it, growing your franchise will never be like before.