As small business owners struggle through the pandemic we can look to franchising as a possible opportunity and we can also examine the solutions to success franchises are coming up with.
The biggest strength a franchise has is that it’s part of a community. The franchisor and Franchisee can get together and even change the business model. This is the time to consult with your franchisor or if you are a small business consult with business leaders in your community to find ways to adapt and survive.
A good example of this would be in the restaurant business where they have adapted to more take out or even delivery service to stay in business. In addition to changes in the business model face the facts.
If your business is down 40% you may want to ask your franchisor for help. Ask them to waive the top line payments by 40% in order to stay in business maybe both parties will have to suffer a together. And in return you can offer them an extended business commitment of say three years. After all we are all in this together.
Remaining versatile, flexible and adaptable is key to survival
Versatile means switching to drive through sales at your restaurant or coffee shop. Or staying open but using proper safety guidelines for all.
Flexible means hiring more part time workers so your full-time workers don’t burnout. Adaptable means allowing high school workers to take the time to go to zoom class.
Here are some great examples of the new ways of pandemic business survival. You can, add in some hand sanitizer or masks with that online product order.
You can create an online club for your business to help people remember what they loved. This will give more back for higher visibility within your community. Anything to help people feel safe comfortable or at ease.
One great example of this type of thinking is from a franchise called School of Rock. Instead of classes in person they created a digital offering.
They brought in famous musicians online to meet the students and most importantly put their students needs first before the business needs.
Another great tech example is OXXO Care Cleaners. Customers drop off their clothes via an ATM style system. “Walk up, scan your app, the door opens, and your clothes are there,” says CEO Salomon Mishaan.
It’s almost as if this franchise was designed for a pandemic.
What if your business took off, what would you do? Franchise Spaulding Decon went from $100,000 in sales per week to $30 million. Let that sink in for a minute.
Laura Spaulding, founder and CEO has a franchise that cleans up anything from meth-labs to mold remediation. They had to hire more administrators, and more people to answer the phone giving estimates. It was just another virus to them.
Spaulding Decon also had to mobilize their franchisors in areas that were far away to meet the demands. The reason the clean up business is recession proof is because it is need based and therefore recession proof.
These are a few great examples of how some franchises have stayed afloat, but more importantly a new way of innovative thinking is evolving around recession proofing a business.
This new normal may evolve or it we may get lucky and the virus will disappear. In any event, we are adapting and learning and sharing our success stories. Keep on adapting and being versatile and flexible.
After all it the ridged bow that breaks in the wind, the bow that bends lives and thrives.