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

Dunkin'
SPONSORED CONTENT
Dunkin'
SPONSORED CONTENT
Dunkin'
SPONSORED CONTENT

Recommended Reading:

Comments:

comments powered by Disqus
Wienerschnitzel
SPONSORED CONTENT

FRANCHISE TOPICS

The Joint Corp.
SPONSORED CONTENT
Conferences
Caesar's Forum, Las Vegas
SEP 1-4TH, 2020

Own a highly profitable business that impacts lives in your community by jumping into action as an Urban Air franchisee owner.
Cash Required:
$600,000
Request Info
Del Taco, one of the nation's largest Mexican quick-serve chains, first opened in 1964 serving up freshly prepared Mexican menu items such as tacos...
Cash Required:
$500,000
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 - 2020.
All Rights Reserved.