What are the numbers that will make your franchise flourish or flounder?
“If you haven’t worked out the critical numbers that will determine the success of your business, then you are flying blind and won’t be as successful as you could be.”
“So what are the key numbers that will drive your business forward? Revenue, profit, staff numbers, store numbers? If you don’t know, you are not alone. But I cannot stress enough the incredible importance of numbers in your business.”
No, this is not a quote from an accountant but it is a key message from Alan Anderson, renowned human resources, management and franchising consultant, who will co-host the Centre’s next Franchise Growth Masterclass in Brisbane on Thursday 18 May.
Alan has been involved in successfully driving the growth of many major franchise brands and hosts the popular Franchise Growth Masterclass in conjunction with former Brumby’s Bakeries Managing Director Michael Sherlock.
Working together, Alan and Michael transformed Brumby’s from an ailing set of shops into one of the largest bakery franchise systems in Australasia with more than 300 stores and a share price that rose from 56c to $3.40 in just three years before the business was sold to Retail Food Group for $46 million.
They chronicled the processes that led to the success of Brumby’s in their book ‘Jumpshift!: Shift Your Business in Hyper-Drive’ and have since worked with more than 100 Australian and international franchises across all sectors helping them to drive and achieve growth.
From his experience, Alan says it is crucial for franchisors to clearly identify and understand the critical numbers that will drive the future growth of their businesses.
“The key numbers that drove the success of Brumby’s were customer count and average spend per customer,” he says. “Whenever I ask, people usually say they know they want to build their business, but they are not sure about the details around numbers.”
As well as pinpointing the key numbers that will drive future growth, it is also imperative to regularly measure and review them to ensure you are on the right path.
“If you are not measuring your critical numbers regularly, then you won’t really know how your business is travelling and you could miss opportunities or make misjudgments,” Alan says. “Discipline is crucial in knowing where you want to be, applying it, and regularly reviewing progress.”
One tool to manage this process is the ‘Dashboard’ concept where the key numbers of a business are prominently on display, just like a car dashboard. This promotes accountability right throughout an organisation – from franchisees and their staff, to field managers, and head office executives and support staff.
To gain maximum value from this transparency, the numbers displayed must be ‘real’ to the business, and not just a percentage written on an excel sheet. Make them real, out there proudly on display, and guiding the pathway to accelerated growth.
Another valuable tool is to encourage and nurture an ‘owner’s eye’ mentality that gets everyone in a business, whether they are making money on the frontline or saving money in the back office, to act and think like an owner. If everyone in a business keeps an ‘owner’s eye’ on the key numbers that will drive it forward, then the fast lane to growth and success will be just around the corner.
The Franchise Growth Masterclass is a unique one-day event for existing and aspiring franchisors to accelerate the growth of their business.
Make the growth of your franchise a priority by learning from those who have been there and done that with rare insights and explanations on driving franchise growth and success.
Register today for the next Franchise Growth Master Class on Thursday 18 May.
What to expect from the Masterclass?
You will be guided on how to implement the same 8-step process Michael and Alan used to transform Brumby’s, which can be applied to any business so you can identify and overcome the impediments to growth in your franchise and accelerate your success - regardless of your industry or size.You’ll walk away with a one-page action plan to overcome your barriers.
- PLUS, receive a complimentary one hour consultation up to 90 days after the event for support with the implementation process.
- AND, earn 150 Certified Franchise Executive Points.
For more information and to register, please contact Kerry Miles on (07) 3382 1125.
Franchise Training For Franchisors (Management)
Learn the 8-Steps to creating a supercharged franchise system at our Franchise Growth Masterclass with Michael Sherlock and Alan Anderson.
*Michael is a high profile business leader who transformed an ailing set of bakery shops in the late 1990s to position Brumby’s as the second-largest bakery franchise system in Australasia with over 320 bakeries by 2007. Alan is a highly experienced Senior Business Strategist. During his lengthy career Alan held senior roles such as Executive Director at chartered accounting and advisory firm BDO for more than 11 years.