Prepare your company for future challenges

Prepare your company for future challenges

The economy is ever-changing, and following the impact of Covid-19 on the world, many multi-unit franchisees are unsure how to strategize to grow and protect their business. As succession planners, we are often asked by multi-unit franchisees how to prepare for an upcoming recession, talent shortages and adjustments to their growth strategies.

Future-proofing your business depends on whether you want to risk and invest more, or pause and reflect on current processes and strategies.

Jeff Bannon, a succession planner at The Rawls Group, said: “People who are concerned about getting money or capital, it’s best to hold your cards and sit it out if you can. But on the other hand for people who want to be a bit more aggressive and take some risk and have a longer view, the thing is maybe buy things or look for things that are at a slightly better price than bought in the past can become.

Remember that not every business makes the same decisions and there are no wrong choices, only the choice and plan that works best for your business. It’s great to keep expanding, but sitting back can be just as beneficial to ensure plans and people are in a good position to move forward.

Protecting and growing your business depends on whether you plan to hit the gas or hit the brakes. Protecting the business essentially means making sure everything is in place, like processes, people and financial capital. Also in terms of protection and growth, great importance is placed on people, as the future of a company cannot depend on one person. A self-centered company and system will not survive or continue to grow until more people are involved. “Growth consists of three components: people, processes and financial capital. Most successful entrepreneurs have process and capital right now,” Bannon said.

People are the most challenging part of growth because hiring and retaining the right people takes time and money. The key is investing in the people who want to grow, hiring internally and giving people opportunities to grow. Michael Einbinder, attorney at Einbinder and Dunn, said: “What you need to do is give people an incentive to care about what they’re doing and persevere, whatever the next step in the business is, whether Sale or growth, and most of it, but not all, is compensation.”

Establish processes and make sure your key people are aware that they are part of the plan to stay in control of unexpected difficulties. You need the motivation to stay and grow with the company, and that motivation can come from a variety of sources, including a competitive salary, benefits, and work-life balance. Communication is critical as individuals need to have a sense of stability and upward mobility within the organization, especially if that future includes growth and the opportunity to become the organization’s next great leader.

Listen to the talk series on Success Despite Economic Uncertainty.

Kendall Rawls knows and understands the challenges that affect the success of a family business. Her unique perspective doesn’t just come from her educational background; but, more importantly, from her experience as a second generation family member at The Rawls Group – Business Succession Planners. For more information, visit www.rawlsgroup.com or email [email protected]



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