4 Tips For Managing Multiple Businesses

Owning multiple businesses allows small business owners to maximise their customer base, geographical reach and potential earnings. Whilst it can be a difficult path with many challenges to overcome, it is certainly not impossible. Read further to discover 4 tips to take on board to ensure success in your multi-business venture.

 

Get A Great Team

Moving from owning and operating a single business, to multiple locations means taking a step back from the day-to-day running. This can be difficult for many small business owners who have often built their business from the ground up. However, bringing in a great team of people to help with these activities will give you the confidence that your business is in good hands. Recruiting and maintaining quality talent is an investment in your business, but it can be difficult to find the right team. Ensure that you are asking the right questions to ensure that their personal goals align with the vision you have for your business, and boost retention by offering a competitive salary and maintaining a positive company culture.

 

Dive Into Data

Looking at the sales data from each of your businesses is a great way to get a snapshot of their performance. Implementing software that allows you to access real-time data from each of your businesses means that you can stay abreast of their activities without having to be on site, and is an important tool for busy business owners. Applying similar systems to other aspects of your business such as staff management, rostering and stock management will also be beneficial if you need to work remotely.

 

Maintain Working Capital

Keeping your bank balances happy when running multiple businesses can be tricky, but maintaining a healthy level of working capital will help avoid disaster. As with any business, emergencies can happen, and dealing with these can drain finances. Ensuring that you have enough capital set aside to handle unexpected expenses across multiple locations is important, and will stop any bad habits of drawing money from one business to save another. A great way to manage this is by utilising outside sources of finance for things such as equipment and refurbishments, while retaining existing capital for business growth and marketing activities.

 

Time Management Works Magic

This may seem like an obvious one, but time management skills will be vital to stay across the activities of each business. Ensuring that you are dedicating enough time to each location is important, as neglecting one for another could result in poor performance. Unfortunately, this is a common mistake among multi-business owners, when focusing on a challenge in one location, it is easy to forget about the activities of another. Prioritise projects and work on the most important ones first, and delegate tasks to your team where you can!

Why We Love Relationship Based Lending

Relationship based lending is not a concept that is new to Australia’s finance industry. But as our small business community saw significant periods of growth, the philosophy at the core of this concept has been somewhat lost by big lenders.

Relationship based lending is built upon the idea that finance providers should take into consideration a broader scope of information than just an applicant’s financial history. Incorporating more factors, both qualitative and quantitative, into the lenders assessment means that the funder gains a more in depth understanding of the applicant and their business. This in turn results in a more educated decision in granting funding, an important consideration under responsible lending practices.

Recent disruptions within Australia’s finance industry have resulted in an even more difficult lending landscape for small business owners, in particular franchisees. Many are finding that the finance solutions offered by traditional lenders and banks aren’t the right fit for their businesses unique and ever-changing needs. In addition to this, many banks are moving away from small business and franchise clients due to the perceived risk of the industry. This is reflected by a Banjo Small Business Finance Survey that found for every 10 SMEs applying for bank funding, only 2 were successful.

Small business owners are now turning to alternative finance providers to gain access to funding. Such providers offer more flexible funding solutions that are a better fit for the needs for an SME, and are removing barriers to finance through simple online applications and faster approval processes. Another key characteristic of many alternative lenders that is appealing to the small business community, is the focus on relationship management.

Alternative finance providers are in a unique position due to the flexibility in their financing options. This allows lenders to place a heavy focus on building and maintaining a relationship with their client, and providing funding with a view to long term sustainability through mutual support.

This is a philosophy that Cashflow It wholeheartedly adopts, with a view to not only further the opportunities available to individual franchisees through finance, but contribute to the growth and success of the franchise networks we work with as a whole. We aim to learn about the challenges faced by each network within the industry and tailor a funding solution to fit the needs of its franchisees. Further to this we actively seek out opportunities to become more involved by attending and supporting annual conferences and brand initiatives.

We hope that by us and other lenders in the industry embracing a relationship based lending model that we are able to better service the businesses we work with and help overcome any barriers to finance facing Australia’s franchisees.

Healthcare Providers In The Franchising Sector

As Australia faces the realities of an aging population, the franchising sector has seen a new area of healthcare based businesses boom. When we think of franchising the first thing that comes to mind is likely QSR operations or home services such as those offered by the Jim’s group, however, as Australian businesses adapt to meet the needs of aging consumers, the popularity of healthcare based franchise businesses is on the rise.

The country as a whole is facing somewhat of a crisis with a lack of adequate services for older residents. This has resulted in a rise in the number of senior and home care franchises, as well as other complimentary services including urgent care centres, medical equipment and supplies providers and assisted living facilities. However it is not just businesses catered towards the elderly that are thriving, with chiropractic, dental, massage, sleep therapy and walk-in clinics also adopting the franchise model.

While this trend of healthcare providers operating within the franchise industry is fairly commonplace in the U.S.A, in Australia the concept is fairly new to market. Consumers are already beginning to see the benefits, with the franchising model offering a level of consistency and quality that is replicated across all locations.

A major benefit of the franchising model is that it offers consumers a recognisable and consistent experience. Healthcare as an industry sees extremely high levels of brand loyalty, with consumers often visiting the same doctor, dentist or even masseuse for the duration of their life. In circumstances where this is not possible, the franchising model allows consumer to interact with a business and process they are comfortable with, no matter which location they visit.

Franchisors are able to leverage this brand recognition to rapidly grow their national customer base. The franchise models ability to offer a large national network of locations is a selling point for consumers, who are more likely to choose a brand where they know they can get the same familiar experience no matter where in Australia they are. Once one location has built a relationship of trust with a customer, the whole network will benefit.

For many healthcare based businesses, the franchising model offers a growth system that allows them to expand rapidly to meet the existing and growing demand brought on by the countries aging population. In particular in-home care and senior transport services are experience high demand, and a lack of existing services has left a gap in the market for new ventures to operate.

It is not only direct healthcare providers that are seeing an increase in demand. The rapid growth in within the sector has resulted in a need for more secondary and related services, mainly complimentary services such as administration, medical billing and supplies.

This trend of healthcare providers entering into the franchising sector provides an exciting new area for investors, and current franchise owners to diversify. As the demand for healthcare is only rising, such franchise brands offer a sustainable model that caters to an ever-growing audience.

Why Aren’t There More Millennials In Franchising?

When you think of the franchising industry Millennials probably aren’t the first thing that come to mind. Many of us would go straight to thoughts of Mum & Pop partnerships formed out of a desire for a flexible working lifestyle and a business they can call their own. However, the franchising model and Millennials have a lot to offer each other, and could just be the perfect partnership.

Whilst the most obvious reason to entice Millenials to get involved in the franchise industry is the fact that someone has to take over the hundreds of franchise businesses currently operated by franchisees approaching retirement, there are so many other reasons the industry could be a good fit for the countries youngest entrepreneurs.

Employment opportunities for young people are few and far between, and as a result new businesses and start-ups are popping up everywhere as Australia’s youth try to find their place in the workforce. It is well known that Millennials have taken a different approach to employment than the generations that came before them, and one of the major differences is the importance placed upon work-life balance. Striving the find a lifestyle that allows flexibility and versatility whilst also providing a level of stability and independence, Millennials may just find that franchising is the right fit for them, so why are there so few in the industry?

The reason is a combination of two things, the first being that many franchise brands have failed to realise the benefits of bringing Millennials into their business, and the second being that those who have, aren’t quite nailing the marketing.

Slowly but surely young entrepreneurs are starting to invest in franchise businesses, however the uptake has been slower than the generations that came before them, partly due to a lack of interest from franchisors recruitment teams. Many franchisors see Millennials as a risk, widely known for their short career tenure as they search to find a role that gives them purpose. The media shines these attributes in a negative light, however in an ever-competitive business landscape, drive and ambition to succeed could bring new life into plateaued franchise brands.

Another important consideration for the long-term success of a franchise brand is its ability to adapt and grow. Bringing younger franchise partners on board can help businesses achieve exactly that. Technological innovations continue to play a major role in almost every industry across the globe and franchising is no exclusion. It is vital that brands are able to navigate their way through the changes brought on by such innovations, and who better to guide a brand through this new landscape than the generation that fueled the change. Millennials are the first generation who could be considered digital natives, and the skills they bring with them in the space are an invaluable contribution to a sustainable business model for the future.

So, why are franchise brands that see the benefits of Millennial franchisees struggling to get them to invest? Many may think a lack of savings, or an inability to get a loan may be a major barrier. However, many Millennials are struggling to find a franchise brand that connects with them, and it’s not because they aren’t out there. Franchisors simply don’t know how to market to Millennials.

As a generation who learnt to tune out sales pitches, approaching with a hard-sell tactic isn’t going to work. Millennials don’t want to be sold too, they want access to information so that they can make a purchase decision when and where it suits them, an approach franchise recruiters haven’t necessarily adapted too.  As when marketing to any audience, it is important to reach people where they spend their time, for Australia’s youth that is websites, blogs and social media. This is where the next generation of business owners are looking for opportunities, and franchise brands simply aren’t utilising the platforms very well.

Ultimately, Millennials are a great fit for the franchising industry in more ways than one. Whilst brands benefit from an influx of young talent with a new and different skill set to their existing network, Millennials are able to invest in a stable career opportunity that comes with the flexibility and independence of self-employment.

Is Not Being Accredited Slowing Your Franchise Growth?

For many years now access to finance has been a consistent issue impacting upon the growth of franchise networks. Recruitment of quality, new franchisees can be a long and difficult process, and loosing a prospect in the final stages because they were unable to secure finance is a major disadvantage for any franchise brand.

Accreditation programs are an important piece in any franchisors toolkit. They take into consideration the strength and success of a franchise brand as a whole, in order to offer guaranteed finance for new and existing franchise partners in the group. This is turn makes gaining access to funds quicker and easier, fueling growth and expansion within the network.

Some franchisors hold the perception that establishing an accreditation will only benefit new prospects entering the network, however this is not the case. Accreditation programs help existing franchisees take advantage of any opportunities that come their way. Established access to funds allows business owners to take out loans for refurbishments, new equipment and even the purchase of a second location. A franchise brand can achieve long-term success by encouraging the growth of franchisees already in the network, not just by obtaining new recruits.

The ability to easily access external funding for major business expenses such as a site refurbishment or equipment upgrades allows franchisees to invest their capital into business growth activities such as local area marketing, which actively generate more profit for the business and fuel the success of the network as a whole.

Despite the time commitment required to become an accredited brand, it seems like a logical step for any franchisors looking to set their network up for success. However, recent changes to the banking climate in Australia has made securing an accreditation through banks and traditional lenders all the more difficult. A lack of flexibility and tightening of already strict lending standards has left those in the franchise industry looking elsewhere for their finance.

While all the big banks all offer some form of franchise accreditation program, incoming franchise partners are still struggling to pull together enough funds to cover their initial investment. Many banks are moving away from what they perceive to be ‘risky’ investments, franchise businesses included. In addition to this, traditional lenders often won’t fund the full value of the franchise, leaving franchisees to invest their savings to bridge the gap. This results in the business holding little to no working capital for operations and sitting in a precarious financial position.

It is clear that whilst banking accreditation was once the cornerstone of a well thought out franchise finance plan, the lending landscape has changed. However, it is important to note that accreditation programs aren’t only available with the big banks. Seeking accreditation with an alternative lender can offer a franchise network a wider range of finance options to fit the varied needs of the franchise partners within it.

As lending conditions become tougher for Australian business owners, it is vital that franchisors take steps to actively overcome the growth barrier that is access to finance. Establishing an accreditation with one or more lenders ensures that no opportunities for growth or expansion will be lost due to inability to get funding.

How Well Does Your Franchise Network Embrace Change?

When it comes to franchise networks, it is a well-known fact that implementing change can be a tough job. A lot of the problems stem purely from the logistical difficulties faced on both the franchisor and franchisee sides of the business that come with implementing any changes, but another important element is the networks willingness to embrace it.

Whether it be a re-branding activity, a move to a new system or procedure, or the introduction of a new product that requires buying equipment or stock, the process of making change within a franchise business is often met with resistance. Franchisors see that change is necessary and key to a businesses survival and success, however it is often the way they go about implementing such changes that ruffles feathers within the network.

When planning a change to be rolled out across a franchise network, it is vital that each and every franchisee is able to understand the reason behind the decision. Taking on a ‘because we said so’ attitude will be met with resistance everytime, and if franchisors can’t make their case as to how the change will be beneficial to the franchisees business, it will just be seen as an inconvenience.

Conducting a cost versus benefits analysis to detail the impact of the change is a great selling point when it comes to getting franchisees on board, especially if the business owner will be incurring a significant expense. It is important to consider that despite being part of a larger franchise network, many franchise owners likely have a plan in mind for how they see their business growing. Asking them to get on board with an unexpected change may be a strain and misalign with their current plans for themselves and the business, particularly if it effects their time or financial commitments.

Another point that gets raised often when discussing the topic of change within franchise networks, is that franchisors should lead by example. Implementing changes in corporate run stores, or with a select group of eager franchisees is a great strategy to actively show the rest of the partners why the change is needed. This strategy can act as a trial period to eliminate any issues before a network wide roll out, and if all goes well will leave you with a group of franchisees to act as positive ambassadors for the change.

This is the first step towards a collaborative approach that gets all parties involved in the decision making process. Opening the proposed change up to recommendations, questions and comments can help air any grievances and answer any burning questions. Embracing some form of collaborative change process often leaves everyone feeling more settled and open when the time comes. Having been involved from the start removes any element of surprise, and gives the network time to have input.

However, franchisors shouldn’t wait until they want to make a big change, to prepare their franchisees. In any franchise group it is vital that willingness to embrace change is encouraged and embedded in the company culture. This starts with the type of prospects that are recruited into the business and is maintained through building a positive association with change and a high level of trust between the franchisor and franchisees.

When dealing with any large network of franchise partners a unanimous decision is unlikely. But taking these steps to foster a company culture that sees change positively and actively following a collaborative process will make all the difference next time your franchise network faces change.

Taking A Minute For Mindfulness

In a time where many peoples jobs take them outside the traditional 9-5 hours, taking time for oneself can often be forgotten. This non-stop lifestyle can also mean people lose track of what they are actually achieving in their work day, and mindfulness is something that can help with this.

Taking some time during the day, whether it be one minute or ten, has a range of benefits for both personal health and workplace productivity. Practicing mindfulness is about being more aware of the actions in your daily routine, and taking time to slow-down and focus your energy. When someone is too focused on task completion rather than the task itself, the quality of the work done is often poor.

Taking time for mindfulness helps bring your full attention to the tasks your are performing and allows you to see situations more clearly, thus achieving better results. Having a greater awareness of how you spend your time helps achieve a better work/life balance, which has been proven to create happier and more productive workplaces.

Looking at one’s personal health, the activities involved in practicing mindfulness lowers blood pressure and reduces the stress hormone. In addition to this, it helps improve positive mindset and helps in being present in the moment. This is why Mindfulness Based Stress Reduction is being incorporated into many companies wellness programs.

If you’re wondering how you can start practicing mindfulness during your day, the answer is simple. Taking some time to perform some simple breathing exercises, yoga or a short walk are all great ways, and you don’t even have to leave your desk.

Nightclub Fitness Is The New Franchise Trend You Need To Try

Research suggests that our younger generations are choosing fitness over the usual alcohol fueled night out. Many young Australians are opting to meet their friends for a group workout on a Friday night rather than at a club, and gyms are adapting to provide a fun filled experience without the hangover.

New nightclub gyms are popping up everywhere and offer all the facilities of your regular gym but with more of a party atmosphere. Attendees can expect to workout in a darkened room with strobing coloured lights and a playlist of club beats throughout the session. The use of this high quality lighting and sound system ensures an immersive experience for gym-goers.

Whilst there are a number of brands making a move into this space, Surry Hills’s ZADI Fitness is getting a lot of attention. The women only boutique studio can also be found in Neutral Bay and offers female-specific HIIT workouts across four different class types. With small class sizes and routines backed by exercise science, ZADI offers women the opportunity to train with state of the art equipment and technology, in an environment that screams fun.

Whilst ZADI opt’s for an edgy ‘unleash the extraordinary’ vibe, other brands and going in a different direction. Many of these new studios offer a bar serving kombucha and bliss balls during daytime hours, with some embracing their nightclub atmosphere and serving up cocktails and shots post-workout.

Whether you’re looking to switch up your workout routine or for something to do on a Friday night, Nightclub Fitness is a must try and expected to be the next trend in fitness franchising.

Cryptocurrency & The Franchise Industry

Cryptocurrency has been around for quite a while now, but has generated a lot of buzz recently as mainstream bricks and mortar businesses began taking digital currencies. Whilst adoption is certainly not widespread, this once questioned concept of blockchain-powered digital currency has gained traction, and as a result more companies are popping up with consumer solutions.

If you’re not really on board the Bitcoin trend you may be asking yourself why? For many people that confusing conversion rates and complexity of the whole system is enough for them to say no thank-you. However, there are a wide range of benefits to both consumers and businesses if they get in on the action.

Blockchain supported currencies offer unheard of transaction speeds and high levels of security. This has been achieved by eliminating any intermediary management entity, meaning that there is nobody or no network that can be hacked or interfered with. Also meaning that there is no need for banks or anything of the sort, eliminating transaction and account management fees. This means that consumers can be confident their currency is secure, and businesses reap the rewards of having the money in their account as the sale happens.

Cryptocurrencies also present the opportunity for big investments. Whilst the volatility of the currency can be off putting for first-time or more conservative investors, those who take the time to track the market and get serious about investing have seen some impressive results. Those who bought in with Bitcoin back in 2010 would have paid less than $1, and would now be seeing a $20,000 return today. Whilst at the time this may have seemed a little futile given the currency’s then limited uses, Bitcoin is now legal tender in Australia since the landmark decision in 2017.

If you’re interested in buying and selling with cryptocurrency, it is easier than you think. Since the blockchain backed currencies have been growing in popularity, a large number of crypto payment and conversion services have popped up. In addition to this, existing apps have even began to launch their cryptocurrencies to make it more accessible to users. A prime example of this is Liven, a loyalty program that partners with 700 restaurants across Melbourne and Sydney. Livens currency aptly titled ‘LivenCoin’ has made them one of the first major players outside of existing ‘crypto communities’, even allowing users to transfer their existing rewards points to ‘LivenCoin’.

This is just one way that small businesses around Australia are getting on board the blockchain – cryptocurrency trend. The introduction of more accessible cryptocurrency platforms means big things for start-ups, small businesses and franchises. The cost of investing in and maintaining a crypto-payment system is far less than that of a traditional bank support EFTPOS system. This allows businesses to get up and running quickly and eliminates barriers such as currency and location when engaging with their customers.

Whilst the country is not trading near as much in crypto as major players such as Japan, it lands a ranking of 14th globally for Bitcoin volume. This suggests that businesses who aren’t already accepting some form of crypto, should consider it. It may not be a reality now, but in a decade’s time it wouldn’t be out of question to see some form of cryptocurrency as commonplace in Australian consumers ‘wallets’.

Why Companies Should Embrace The Flexible Workplace Trend

The concept of a flexible workplace is not necessarily a new one, but the number of companies choosing to embrace it is. Innovations in technology have made the idea of a flexible workplace more and more attainable, with a bricks and mortar office no longer necessary to bring together a team.

Despite the many obvious benefits of adopting a more flexible workplace culture, many companies are still opting to keep in line with more traditional models. The reason isn’t that they don’t see the upside, but it is that many organisations do not trust their employees to get the job done at home. This feeling of mistrust is reflected by the ⅕ of employees who report feeling that they need to be in the office to be ‘seen’ working by their superiors.

The demographic of employees seeking flexible workplaces are often still viewed as mostly parents with young children, which is simply not the case. There is a diverse group of people, that is quickly growing, that are choosing to look for employers who offering more flexible workplace arrangements, and for a broad range of reasons.

Offering a flexible workplace makes for a more inclusive and considerate company culture, as it caters to people with disabilities or mobility concerns, family commitments and those living in rural areas. Such arrangements allow people to establish a work environment and schedule that meets both their needs and the needs of the company.

In addition to this, operating with flexibility has been known to attract high quality individuals and lifts any geographic restrictions placed upon the company when hiring. As a result companies who embrace this culture often operate with high performing teams, who are more productive as a result of better work-life balance.

If you’re company doesn’t want to go fully remote, but still offer some level of flexibility, the benefits can still be realised. Offering your employees the opportunity to work out of the office or adapt their work hours, whilst still maintaining a physical office space, encourages the same boost in productivity. This can also help lower the overhead costs of running the office, which in the long-term can be invested back into company development.

Looking at the bigger picture, the flexible working trend is doing good things for our society as whole. Remote workers results in less cars in the road, helping reduce the environmental impact of commuters and improve traffic conditions during peak hour. As well as this, flexible working arrangements offer older employees more choices when it comes to their involvement in the workforce. Studies show that older workers would be more open to taking on more hours and staying in the workforce for longer is more flexible options were available.

If getting on board with the flexible workplace trend is something that your company hasn’t considered, maybe they should. As technology progresses faster than we can keep up, the reality of what forms a workplace is quickly changing, and the results mean happier employees and a more productive team.