You may have heard it in passing during the IFA conference or maybe a colleague brought it up over a casual coffee catch-up.
Scalability is an industry buzzword and for good reason.
If possible, it is a business concept to familiarize your franchise with during the development phase because it comes with more steps and time as a build-out afterthought.
However, if you’re only hearing about scalability post build-out, there’s still an opportunity to create this growth plan.
Defining Scalability
Scalability: The practice of anticipating change with forward thinking expansion and upgrade layouts in order to adapt to franchise growth and the current market. This change will come through the forms of technology and multimedia applications as well as office procedures and various communication programs depending on your franchise’s unique mission.
The first step a franchisor should take before developing a scalable implementation plan is survey current assets, year-end goals and the forecasted budget. Once collected, whether you’re looking at the first draft of a blueprint or your franchise is up and running, you’ll need to consider the following:
Building Design
New Build:
Assess the building’s mockup with your professional installer to determine areas of growth in terms of network, drops, cameras, point of sale terminals and audio equipment. Be sure to ask a certified IT technician for recommendations of leading equipment to ensure you’re not buying devices that are on the verge of being outdated.
Most importantly, be sure it is a plan that contains a small growth gap, as it will leave room for your franchise to expand into. For example, say you foresee your franchise requiring more parking lot space in a year to keep up with patron demand. Although there isn’t an extended parking lot just yet, you can prep the building with camera plugs on the corner of your franchises structure. That way you’re already situated for another surveillance feed when the time comes. Normally adding applications like plugs after build-out is more costly, so think ahead where you can.
Scalability is also important to know for costs in the Franchise Disclosure Document (FDD). True costs for pro forma will assist with the build out process upfront.
Existing Build:
Although your brick walls are firmly grounded and business is already moving, your mindset can’t be concrete if you’re attempting to future proof your franchise. By transitioning into a flexible point of view, you can reassess your current tech and communications models to ensure optimal efficiency across all locations. Connect with an IT provider to share your goals and concerns in order to modify your current strategy for forward growth.
Business Communication Tools
New Build:
The way your staff communicates internally and how your franchise appears to your customers through various interactions affects brand reputation. While financial success and customer loyalty are the universal franchise goals, if your business doesn’t plan for future expansion and the needs of your patrons, your customers may outgrow you. That’s why it is a good idea to invest in operational management tools among all your locations, like point of sale (POS) systems and next generation WiFi, to expedite wait time and provide a positive customer experience. It also helps franchisors streamline data collection for easier analysis.
Begin seeking out collaborative online platforms for quick instant messaging and file transfers. Perhaps software that assigns tasks to other members and monitors deadlines is ideal for your multi-location business. You only need a little to do a lot of the heavy lifting; don’t feel pressured into buying this week’s latest and greatest. Each franchise has a unique goal. Do your research and see what makes the most sense.
Existing Build:
Are your content management system (CMS), customer relationship management system (CRM) and an array of delivery platforms up-to-date? Do they all serve a meaningful purpose that channels your goals and are all of your franchises operating with the same programs? Conducting a program audit to see which systems are generating results can simplify your workflow while saving you money. Although you might not have the revenue to break a contract immediately, set a reminder for the expiration date with a pre-typed email to confirm you won’t be continuing with that unbeneficial service.
Standardization
New Build:
Having a uniform, scalable approach to all of your franchise locations supports easy roll out when upgrades are required for evolving systems like voice over Internet Protocol phones (VoIP) and firewall backup protection. Scalability is simplified when you have a one-solution format. It makes franchise expansion cost-effective and less daunting.
Existing Build:
If you’re operating with numerous tech and communications systems at each of your locations, you most likely need to exert more resources to come up with several solutions for one problem. You may be lacking the capital right now to rip out all of your franchises’ tech applications in order to embrace standardization, but a fragmented system hurts scalability. It may be a gradual process, but making a genuine effort to operate on the same applications means all of your locations will be able to grow at the same time, ensuring no oversights are made, when they’re ready.
The 80/20 Rule
New Build and Existing Build:
You’re not expected to be wizards with an all-knowing glass ball. It’s difficult to completely predict what will impact the market ahead of time. But with a true pulse on your customers’ demographics and habits as well as seeking out industry leaders’ and associations’ predictions, you can strengthen your preparation. Plan and manage for 80% while allowing 20% room for reactive industry changes.
By predicting and adapting as best you can to customer habits and industry trends, your franchise will be to meet a growing demand of your service or product. Although cash flow may be tight right now, proactively and methodically investing in a scalable plan, even if it’s a gradual process, will support your mission in a competitive marketplace..
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