Change… Because Failure is not an Option

change-course

Like a ship at sea, a business should make directional changes in a long, sweeping manner. Conversely, although abrupt change in direction may create havoc, it may be deemed necessary by the captain and navigation team to avoid what may not be apparently visible on the surface to others on the ship, but is evident nonetheless through compilation of data and viewing radar. In any event, well thought-out plans, including contingency plans must be in place and acted upon to arrive safely at a specific destination within a certain time frame, and with available resources.

However, what happens when seas are rough, or when a storm is approaching, or when an engine shuts down? It’s then the captain’s responsibility to crew and passengers, and to the ship’s stakeholders to make any and all necessary changes to ensure all interests are protected. Thereafter, when the ship is safely docked, management must review the events that took place and explore options to ensure the same problems don’t reoccur. Management must identify ways to improve performance by developing strategy and executing on tactical plans to accomplish objectives at all required intervals – short, mid and long-term.

Change requires thought and planning. As does operating a successful business. As change occurs, many within the business are exposed to decisions that on the surface appear to be “drastic or severe” and are not understood and/or agreed upon. However, what is typically not realized are areas of weakness and vulnerability that must be addressed and with the utmost sense of urgency. In many cases there are common denominators across multiple areas of the business. Most will be directly attributable to reduction in sales. Some will adversely affect profitability.

Unfortunately, financial concerns seem to keep coming back, although, not quite at levels during the economic downturn of 8-10 years ago. But, as was the case back then, deficiencies, usually hidden by high sales levels are starting to stand out again like sore thumbs. Accepting these facts while realizing limitations and shortcomings is vitally important, but knowing what and how to improve [and change] is required. Definitive action is paramount!

Change what needs to be changed. Prioritize changes that will make the most immediate impact. Grow into the changes that aren’t urgent. But, do it all within the time frame where challenges present themselves as survival may be dependent upon the same. Change, as unpopular as it might be, is necessary to recover AND to move forward. To this end, hard decisions must be made – with absolute conviction and without delay for the good of the business and ultimately, for all within the business. Yes, change is difficult. But so is failure, and failure is not an option!

Benefiting From the Relationship Between Franchise Consultant and Franchisor

“When the IFPG trains new Franchise Consultants, we always instruct them to take the next step in their career by making the wise investment of time and effort into getting their CFE asap…” – Red Boswell, IFPG President

Red BoswellThis week on Franchising & You, newly appointed president of the International Franchise Professionals Group, Red Boswell was our guest. Based upon his insight from his experience working with third-party sellers, Red shared his perspective on two key relationships, Franchise Consultant & Franchisor and also Franchise Consultant & Franchise Candidate.

In addition to sharing his goals and objectives with IFPG and especially as they pertain to success within the ‘franchise tripod’ – Franchisor, Franchise Consultant and Franchise Candidate, Red addressed several key points:

  • Importance of Franchise Consultant and Franchisor having a strong relationship and how that relationship benefits the candidate.
  • How working with a Franchise Consultant can prove extremely valuable as a trend in franchising sees more and more home-based or small office-based franchise opportunities dotting the landscape.
  • As more candidates, impressed by the relationship they’re building with their Franchise Consultant are deciding to explore franchise consultancy opportunities themselves.

Listen to today’s segment HERE.

Learn more about Red Boswell HERE.

Franchising & You podcast is sponsored by Benetrends FinancialSpadea Lignana and Retail Solutions.

Legal Entity Options for Your Franchise Business

Tom Spadea

Of all the choices made when starting a business, one of the most important is the type of legal structure to select for a company. Not only will this decision have an impact on taxes, it will also affect personal liability and even the ability to raise money.

This morning on Franchising & You podcast, Tom Spadea, partner and Franchise Attorney at Spadea Lignana talked through the topic of legal entity options across several situations:

  • Legal entity options for a franchise business and considerations for each
  • Considerations for choosing a legal entity for multi-unit and area development
  • Choosing the right legal structure considering implications on future events – voluntary and based upon necessity – sale of business, death of principal and effect on family, death of a partner, bankruptcy.

Listen to today’s segment HERE.

Learn more about Tom Spadea HERE.