Beginner’s Guide to Starting Your Own Franchise Business – Part Three: Running the Business

In our last blog we made sure you’re paying enough tax (but not a penny more than you need to) once you start to trade as a franchisor or franchisee.

So, now your franchise business has been set up, we come to the actual business of being in business. This is where we have an exciting opportunity to plan, implement, and grow your idea.

The power of systemisation

Often quoted as the key to success, systemisation puts everything on record, in one place for everyone to follow. Putting systems in place for how things are run, from financial management to who buys the teabags can lead to the smooth running of your franchise business, and the opportunity for you to delegate easily.

There’s nothing worse than someone coming into a role or being contracted to do a job and not knowing what or how to do what’s asked of them.

Systemisation is key to solving most problems by providing autonomy for those who work with you, increased potential in personnel and the company, and best practise in customer service.

It’s a proven fact that when you come to sell your franchise business, systemised businesses attract a higher price because they run themselves.

But wait! There’s more

Talking of systemisation, it’s vital that you plan your finances well too.

Financial management is everything involved in the organising and overseeing of the financial activities of your company and is crucial to get right as soon as you start your franchise business. In simple terms, this means having enough to pay your contractors, employees, and suppliers.

Often in the first few months of a new business’s life, more money can be going out than coming in, so planning and budgeting for all circumstances stands you in good stead for riding out the lean times. This is cash flow management.

There’s often a big difference in the time it takes for your customers to pay, and the need to pay your suppliers. And cashflow projections allow you to take educated guesses using the payment history of customers and the relationship you have with suppliers, so you can be alerted at the first sign of any possible problems in the future.

There’s help

Many accounting software companies have great products on the market, so much so that it can be difficult to choose what’s best for you, what will last the duration, and what’s flexible enough for changing circumstances.

At The Franchise Accounting Specialists, we have the computing and accounting expertise to guide you through software systems, and a good working relationship with service providers, many of whom can tailor your software to your specific requirements.

With all of this taken into consideration, and implemented well by all, you’ll have a franchise business that you manage instead of a business that manages you!

Next time, we’ll bring this short series to a close with a summary of all the steps you need to take.