Published in Business Franchisor Mar 2013
Building a business is normally a long term affair. When we do a business plan, we envisage what will happen over the next few years, and use our best forecasts to make the long term decisions, and hope all goes to plan.
Why is it then when many businesses look at their long term network planning, there is a huge variety of processes used, from being proactive, such as companies like McDonalds and Caltex, through to companies that are totally reactive – where they can be led like a bull with a ring through the nose?
In many cases the location strategy for a business is driven by minimising expenses, and to that end, minimal staff (and in some cases the property department is the waiting room for retirement). When working in the oil industry, I must confess that was our assessment of many of the property managers of the time!
However the decisions this group makes for your business are some of the most important long term decisions that can make or break a company over the next 10 or 20 years.
Poor planning in new store development leads to the closures of the next 5 – 10 years, and the costs of those can be astronomical. Think of companies that rose like comets and sunk down just as quickly (some to try and re energise again). Names like Starbucks, Klein’s Jewellers, Allan’s Music and Clive Peeters come to mind.
Published in the Franchising Magazine Mar/Apr 2013 Issue
Getting the territory right for service franchises is essential. So where should you go, and how do you know your territory is sufficient to support a business?
If you're investigating whether or not to invest in a business in the growing services sector it is inevitable that you will have questions about franchise territories.
A service franchise can focus on house maintenance, cleaning, ironing, oven cleaning, even providing a care service. Or if you like the outdoors - working in the sun, rain and wind - maybe one of these is for you: pool cleaning, dog walking and washing, building and renovating, antenna installation, roofing, paving, gardening and landscaping.
Peter Buckingham is the Managing Director of Spectrum Analysis Australia. He is a certified Management Consultant, and a Fellow of the FCA and IMC.