A Management Mindset - Managing Financial Risk
Company Added
Company Removed
Apply to Request List

A Management Mindset - Managing Financial Risk

A Management Mindset - Managing Financial Risk

Building a successful multi-unit operation is difficult for any entrepreneur. Doing it successfully comes down to having the right management mindset, says Rod Bristol, a former franchise executive and financial expert.

He recently wrote about what he says are the 5 critical capabilities that multi-unit franchisees must master in order to be successful.

Here's the fifth and final of his 5 competencies:

 

Managing the financial risks and rewards (planning the growth pathway)

Managing financial risk. The higher reward (additional profits) of multi-unit ownership comes with a trade-off: higher financial risk. In simple terms, growing sales and profits requires more capital or debt. It's the way wealth is built, but only if the enterprise is successful.

How long will it take to produce enough profit to repay the debt and pay a reasonable return to the owners? What if it takes longer than expected? Where will the money come from? What if you do better than expected? Where is the next opportunity to invest? Successful enterprise managers have written financial plans (Plan A and Plan B at least) that align with their personal financial goals and capacity. They take risks and then manage the drivers of their success to assure their rewards.

Published: October 28th, 2019

Share this Feature

The Joint Corp.
SPONSORED CONTENT
The Joint Corp.
SPONSORED CONTENT
The Joint Corp.
SPONSORED CONTENT

Recommended Reading:

Comments:

comments powered by Disqus
Ideal Image
SPONSORED CONTENT

FRANCHISE TOPICS

Pronto Insurance
SPONSORED CONTENT
Conferences
Hotel Savoyen, Vienna, Austria
JAN 28-29TH, 2020

Meineke Car Care Centers is a leader in the automotive aftermarket, providing high-quality, low-cost under-car repair services at more than 800...
Cash Required:
$110,000
Request Info
Are you interested in a health conscious franchise opportunity in a growing smoothie industry that does over $2 billion in annual sales in the United...
Cash Required:
$100,000
Request Info

Share This Page

Subscribe to Multi-Unit Franchisee Report

A Franchise Update Media Production
Franchise Update Media
P.O. Box 20547
San Jose, CA 95160
PH. (408) 402-5681
In Loving Memory Of Timothy Gardner (1987-2014)

Copyright © 2001 - 2019.
All Rights Reserved.