Customer Experience Is the New Price Tag
Rising prices mean customers expect more. See why customer experience in franchising now matters more than menu prices or discounts.
Keep Reading“I can tell you I don’t have money, but what I do have is a very particular set of skills. Skills I have acquired over a very long career.” — Liam Neeson as Bryan Mills in the 2009 movie Taken.
The particular set of skills all franchisees need won’t make them action movie heroes, but experience shows they will become the fastest to grow sales and profits. And the best part? It doesn’t take a very long career to master them.
Businesses grow faster when owners have a command over what we call “Breakeven PLUS”. By mastering this small amount of math, they set profitable sales goals, understand how their costs change as sales grow, and assess expansion opportunities with confidence. As a franchise business advisor, you play a huge role in making that happen.
Profits are the lifeblood of any business at every stage of its life. The business must generate enough to pay back debt, reinvest in the company, and pay the owner. When franchisees know how much profit they need and understand their cost structure, they can work backward to determine the sales required to yield that profit.
Knowing what it takes to break even is essential, but that’s not the goal. The goal is Breakeven PLUS profit. And it’s the only logical way to approach revenue targets. It beats the usual method of setting a goal of “10% better than last year” and hoping some profit falls to the bottom line.
Their financial training instills a mindset that profits are a “need to have,” not a “nice to have.” They can predict how much profit they need. It’s not just an exercise; it’s a foundation for their business plan.
Once they know their profit goal, they use the Breakeven PLUS formula to calculate the sales required to earn it. It’s not a number handed to them by their accountant or their business coach. They create it. And people don’t argue with their own data.
They build a plan to generate the leads, conversions, and average ticket that supports the plan, along with a process to monitor and manage it. They look to their franchise support team for guidance, but they take ownership of their goals and outcomes.
They know they are in a race to profit and that the goal is to surpass breakeven and become consistently profitable before their cash reserves run out. They take this seriously.
Gaining the Breakeven PLUS skill set is the fastest way to build what we call a Profit Maker’s Intuition. Once it’s dialed in, they make brilliantly profitable decisions more frequently.
Owners who invest in their teams to gain these skills expand their capacity, lead insightful discussions about growth and spending, lifting the financial intuition of the entire enterprise.
Breakeven PLUS skills lead to more profitable day-to-day decisions and stronger long-term planning. Most of our franchise clients include Breakeven PLUS training in their onboarding for both franchisees and business coaches. Coaches reinforce and expand on these concepts as franchisees apply them to their business.
Join us at the FBR Summit for our session, Coaching for Profitable Growth. This interactive workshop provides franchise support professionals with practical frameworks to improve unit-level profitability and financial decision-making.
A case study grounded in real franchise-system challenges will prepare attendees to help more franchisees reach Breakeven PLUS and beyond.
We’ll see you in Austin.
Photo courtesy of LG전자, CC BY 2.0, via Wikimedia CommonsCreative Commons.
How can you make an immediate and lasting impact on your franchisees’ success? Find out at the FBR Summit, October 28-30 in Austin, TX. The Summit is an intensive, franchise industry event created just for operations leaders and their teams that directly support franchisees. Don’t miss it!