Expanding your business into a franchise is an exciting and intimidating step. On one hand, you’re growing your brand and expanding your reach to new markets and potential customers. On the other, unless you’ve discovered the secret to time travel, it’s nearly impossible to manage every location on your own, meaning you’ll need to learn to delegate. However, as the head of a franchise, you still need franchise management tools to keep an eye on the health of each of your locations without complicating your workflow or slowing down your business.
Setting and Knowing Your Financial and Startup Cost Limitations
While it may be incredibly tempting to open up multiple new locations all at once, first take a good hard look at your finances and funding before you commit. If this is your first time operating numerous stores at once, you might want to start off small. That way, you’re gaining experience as a franchise owner while mitigating the risk of failure. Keep in mind that your startup costs don’t simply include the price of finding and leasing new properties. You have to include inventory costs, staff salaries, and general overhead.
You’ll also need new POS systems for each of your locations. Luckily, if you’re using an effective system, this will make expansion a snap. Many cloud-based systems make it easy to scale alongside your business without requiring massive legacy system hardware investments. For the most part, expanding to new locations simply means logging into the software.
Many franchise owners have trouble avoiding the pitfall of expansion costs and far too many of them rely on legacy systems and cash registers that are prohibitively expensive and limit expansion. On top of all of your other operational costs, do you really want to allot a large percentage of your funding towards simply being able to process sales? Your answer is probably no. Make thoughtful decisions when it comes to the POS platform you implement across locations. Not only can you save money up front, but the right system can also help cut costs in different ways, from inventory management to helping inform employee decisions so you’re not overstaffing certain shifts.
Managing Quality and Staff Across Multiple Sites and Shift Times
Running a business presents enough difficulty without having to worry about maintaining a brand image or staffing concerns. This grows more complex as you add shifts, shift supervisors, and locations. Tool standardization is a vital aspect of effective and consistent staff and site management. This is where an innovative, omni-channel POS solution will pay dividends.
Modern, cloud-based POS systems give you an easy, effective way to manage all aspects of your business as a virtual, single entity. Interconnectivity between all of your locations and shifts presents a singular, real-time view of business operations. If store one is being overloaded but store two has half of its staff idle, you can adjust staffing on the fly to keep your customers happy. Additionally, inventory management and monitoring allow your products to be in the locations where they’re needed and not collecting dust in one location while other locations are presenting empty shelves.
The cloud-based aspect of this type of POS solution means that your reporting and data, as well as that of the customer, is safely and securely stored in the cloud. This gives you access 24/7 to run reports and data analysis, as well as to elevate permissions on the fly in the event a shift supervisor needs to execute an emergency management level task. Your POS system becomes a business asset, giving you a concise way to manage your franchise while reducing the costs of running your operations.
Using Franchise Management Tools to Control Costs
Implementing a well-thought plan and suite of franchise management tools must be done with operational efficiency and cost management in mind. Each tool brought into your franchise must fill a purpose and not come with any hidden or variable costs. Any tools you utilize must keep up with your growth, both in terms of sales and locations, and you will want to avoid being locked into long-term software and hardware integrated solution contracts.
Escalating licensing and support costs, perhaps the most common catch when it comes to business software, must be avoided if you are to maintain high levels of cost control. Software support must be available when you are, and there should be a way to end a support contract should the vendor’s available hours change. You must also be afforded the ability to add or retract devices without excess charges or fees, as either will add another line item in the expenditures ledger.
It’s also important to have the freedom to select the credit card processor of your choice. Systems that lock you in are outdated and restrictive, often trapping you in service contracts that charge exorbitant fees and limit how you accept payments. Choose a system that allows you more flexibility to operate your franchise how you see fit.
Gaining the Support of a Valuable Asset and Partner
Expanding into a franchise is a big decision and requires a lot of planning and preparation. Your POS provider must be able to look at your business plan and identify any process gaps that need to be addressed. Armed with this information they will present to you a customized solution that addresses any process gaps while putting all of your locations on the same page in a seamless, one-stop solution that is easy to use and learn.
Franchise owners need transparent management and a swiss army knife solution that becomes a valuable asset in its operations. An engagement with talech means that your POS solution will be flexible enough to grow with your business and industry while remaining cost effective enough to have nearly a zero financial footprint on your budget. Reach out to us today to sign up for a demo and to learn more about how talech can be your valued POS partner.