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If you had told me 10 years ago that I would not only be a franchise business owner but an owner of two separate franchises with five total territories, I would have laughed. I had been running a nonprofit community organization, and before that, I was in commercial finance. What did I know about running a business? But I'm glad I didn't hesitate to jump aboard the first franchise and to say yes when offered the chance to scale up to multi-unit franchise ownership.
It was a no-brainer. My partner and I had left our corporate jobs for the freedom and empowerment of business ownership; we bought a territory in Transworld Business Advisors, which facilitates the purchase and sale of small to medium-sized companies. After we got Transworld up and running successfully, we looked into franchising with a new concept called Exit Factor, a value growth and exit planning consultancy. The two brands complement each other; when a business isn't ready to sell through Transworld, the owner can work with Exit Factor to increase profitability and streamline management, resulting in a higher valuation that brings a more profitable sale when they are ready.
With such seamless alignment, Exit Factor was the perfect opportunity to expand our scope. It worked so well that we added three additional territories when they became available.
Scaling up has taught me a lot about managing growth. Here's some of what I've learned.
Your franchise brand's corporate team is there for you; use them for the big strategic matters and everyday practical tools. For instance, we use a phone transcription tool that we can use to enter our notes into the customer relationship management tool (CRM). It enables everyone to be more efficient even if they have different comfort levels with technology.
Running multiple businesses means managing different teams; you can't have the same people working for all your units. We knew that we had to operate the two franchises separately, especially since each business needs a team with differing strengths. We brought on staff, including virtual assistant support, and we learned how to leverage technology to make sure we wouldn't get buried in the daily operations.
The key to successfully scaling up is communication. Both of our different brand teams meet separately once a week, and once a month, we bring both brands together so we can get to know each other and learn how we can leverage each other's strengths. For instance, if someone comes to Transworld and says they want to get X number of dollars for their business, but their broker knows it's only worth Y, it's in the broker's best interest to send them to Exit Factor to improve the client's valuation.
Before starting to scale up, it's critical that the franchise owner understands everything they're in for, from their financial responsibility to operational matters. Talk to other multi-unit franchisees in your brand and thoroughly review your FDD.
Long-term planning is critical, and I wish I had done more of it. But you can't plan everything. Sometimes, things happen that you didn't anticipate, and that's okay too. Beware of the phenomenon known as "analysis paralysis," when you spend all your time researching and investigating and never make a decision. There has to be a point where you just do it.
When it comes to deciding whether to scale up, you are the expert that you should listen to most closely.
The opportunity must be right for you, your situation, and your background. When we scaled our second brand, I didn't have young children at home anymore, so I could devote more time to the business. Your situation may be different; you need to find what works for you.
If you decide the opportunity is right, go for it. Be ready to work hard, learn to manage difficult circumstances (and difficult people, sometimes), and earn the rewards of your dedication.
I don't think I anticipated the amount of work it might take to get here. But I always knew it would be worth it.
Diane Hartz Warsoff is president of Exit Factor of SLC & Utah County and co-owner and managing partner of Transworld Business of Advisors of Utah County.