In the rapidly evolving world of franchising, the future holds great potential as digital transformation and new opportunities emerge. A panel of industry experts, including Kylee Valentine from Findex and Glenn Walford from Magnetic Business Media and Franchisebuyer.com.au, recently convened to discuss the changing franchise landscape and provide valuable insights.
One key element that is increasingly important for future franchise success is data. Valentine emphasizes that businesses that have a solid understanding of their financial data tend to outperform their counterparts. It’s not enough to simply generate financial data; businesses must also analyze and utilize this information to make proactive decisions based on accurate information rather than relying solely on intuition.
The franchise industry in Australia, which is valued at AU$172 billion, is shifting its focus from franchise sales to a growth mindset that prioritizes innovation, advanced systems integration, and a deep understanding of the local market. Franchise owners, regardless of their size, are now actively seeking education and solutions that can streamline operations, maximize profitability, and foster a forward-thinking approach.
Another future trend in franchising is the standardization of financial reporting across different units within a franchise system. Implementing a standardized chart of accounts, for example, can help align financial data, facilitate comparisons, and enable more informed decision-making. Valentine highlights the importance of the standard chart of accounts in bringing businesses in line with each other and providing a basis for analysis and improvement.
Recruitment strategies in the digital age also play a crucial role in the future of franchising. Effective communication remains a timeless factor in franchise success, and franchisors often face challenges related to messaging. Walford emphasizes the importance of conveying the right message and ensuring that it resonates with the target audience. Franchisors must find creative ways to stand out in the market and effectively communicate why potential franchisees should be interested in their offering.
Video has emerged as a powerful tool for capturing attention and generating leads in the digital era. Walford suggests that brands allocate resources to social media platforms, with a particular focus on video content. Platforms like TikTok, Facebook, Instagram, and YouTube offer opportunities to create engaging and impactful 30-second videos that can effectively convey key messages.
Looking ahead, the future of franchising holds exciting possibilities. With the upcoming retirement of millions of baby boomers and the transfer of business assets to the next generation, there will be a seismic transformation in business ownership. This paradigm shift calls for innovative solutions that address the unique needs and challenges faced by aspiring entrepreneurs. Franchisors must leverage the power of data, standardize practices, and embrace evolving recruitment strategies to thrive in this changing landscape.
In conclusion, the future of franchising is full of potential. By harnessing the power of data, adopting standardized practices, and focusing on effective communication and recruitment strategies, franchisors can position themselves for success in the evolving franchise landscape.