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Business performance is a fundamental component of long-term success. It is also a priority area we look at when working with multi-unit franchise owners in developing a succession strategy because a core component of succession planning is looking at overall business operations. If the business is not performing well, ultimately, your options are limited in terms of gifting, selling, growing, or transferring to next generation owners.
Multi-unit franchise owners, like many other business owners, often analyze the success of the business based on profits generated. However, ensuring success as you consider the big picture vision goes much deeper. It dives into the layers responsible for driving revenue, profits, and business value. It is here where a succession strategy is a critical piece of the puzzle as performance is influenced by teamwork, leadership, structure, and strategy. Enhancing business performance not only builds value, but it also benefits the family members, employees, managers, vendors, or other relationships tied to the franchise. Whether good or bad, you and your business are in a position of influence that impacts many lives who depend upon income or a service/culture to support their lifestyle.
Working with multi-unit franchise owners to cultivate structures and cultures that create predictability of profits, we analyze these top six performance metrics:
There are many additional business performance metrics that also measure success, but these are the top six. Performance mediocrity is not an option in succession because the predictable influences and distractions associated with transferring ownership and management challenge the survival of an average or struggling operation. Underperformance is a threat to succession because performance success is the predicate to succession.
Kendall Rawls knows and understands the challenges that impact the success of an entrepreneurial owned business. Her unique perspective comes not only from her educational background; but, more importantly, from her experience as a second-generation family member employee of The Rawls Group - Business Succession Planners. For more information, visit www.rawlsgroup.com or email info@rawlsgroup.com.