When owning one franchise just isn't enough!

Posted by Matthew S on Wed, Jul 12, 2017 @ 12:07 PM

BenefitsMultiunits.jpgFor many franchise business owners who love what they do and want to continue building their story of success - sometimes owning a single store just isn't enough! And while there are certainly important considerations to think about before embarking on a journey towards multi-unit franchise ownership (which you can read about here in our article, Tips on Becoming a Multi-Unit Franchisee), there's also a number of great benefits in owning more than one store too!
 
Profitability: Possibly one of the most attractive benefits of owning more than one store is the potential boost in profits through multi-unit development. For example, multiple ownership of stores might improve vendor discounts and savings through the sharing of resources between locations. Plus, when building a new location, a business owner will have the skills and knowledge they gained through opening a prior location, which could facilitate a more efficient (and potentially less costly) build-out. However, careful research of communities before building a new location must be done in order to understand when the break-even point for each store might be reached. 
 
Working Smarter: As mentioned in the paragraph above, a business owner who already has opened and successfully run a store should understand what it takes to ensure business success. They're usually able to work smarter and with more efficiency! Plus, when opening multiple stores in a franchise model, you already have the advantage of understanding how the franchise system works - which means that opening a new store shoudn't take as much time as it might have back when your very first store was opened!
 
Geographic Advantages: With multiple units, not only could there be savings through marketing campaigns (as marketing could be just as effective with many stores in the same region, as opposed to just one), but a franchisee could also see benefits through staffing. For example, if a new store is opened, a business owner might want to shift several seasoned employees to the new location to help with training. Or, if one store finds that it needs additional help, employees could temporarily be moved from one location to the next. Additionally, some staff could be assigned to cover multiple locations as well. An employee who works 15 hours a week may agree to help out 20 hours a week in order to help with an extra store or two.
 
Increasing Brand Awareness: Through opening a new store in a new area, you're increasing the amount of recognition your brand has, and it potentially opens up the products and services your store offers to thousands of new customers. Also, a new store located within a community may be more effective in being involved as a positive presence in that community, such as participating in local events (parades, festivals or clubs). Having a trusted brand that is seen by customers as beneficial to the community may give your business an edge over a competitor!
 
Shear Madness Franchising franchises Shear Madness Haircuts for Kids salons. We have worked with multi-unit franchisees in providing excellent support and service (in order to encourage continual growth and franchise success), and have sometimes seen the unexpected happen!  When it does, we help by identifying and helping with challenges that might arise for franchisees. Additionally, we work to present options that can help prevent these events as well. Having a knowledgable support base who can help guide and advise you through your business journey is a significant advantage of franchise ownership!

Would you like to sign up for our Monthly newsletter? If so, click HERE!

Are you interested in learning how YOU can join the Shear Madness Haircuts for Kids family and run your own successful small business? We are one of the fastest growing kids hair salons in the industry today! If you would like to learn more about this franchise opportunity or small business marketing, great marketing strategies, resources for small businesses, how to grow your small business or how to become a successful owner of your own kids hair salon franchise business, please click below or call 1-888-98 GONE MAD

Item 7 Download

Topics: franchise buyers, buying a franchise, Small Business Franchise Information, Business Tips, Free Resources for Businesses, business growth, evaluating a franchise, business ownership, multiunit franchise

Tips on Becoming a Multi-Unit Franchisee!

Posted by Matthew S on Thu, May 11, 2017 @ 14:05 PM

multiunit.jpgAsk almost anyone who has opened their own franchise business, and they'll tell you that success rarely happens overnight! Building your store into a thriving business sometimes takes a healthy financial commitment, as well as patience, perseverance and of course - hard work! But after you've opened your first store, should you consider opening another? What about three or four? Or 25? In the world of franchising, with hard work and setting goals, you can achieve these dreams. But understandably, you have to make sure you don't bite off more than you can chew! 

While many franchisees may be perfectly happy with achieving success through opening one franchise location, opening multiple units requires certain abilities which may catch some people by surprise. For example, a franchisee will find that it's a completely different ball game managing multiple units. It's not like it was when they only had one store to worry about! Now, with many moving parts and employees to manage, a franchisee will need to step into a role more like that of a CEO (with managers, human resources and accounting staff to help grow the business). In other words, it'll be a lot more difficult and stressful to try to micro-manage every detail when multiple units are owned. This is where hiring the right people and trusting them to help you grow with multiple units is extremely important when pursuing this path. And sure, under a multi-unit model your employees might not do it exactly the way you would have done it, but as long as it's delivering the results, don't sweat it.  If you can get an employee to do it 80% of the way you would have - you have a great employee!

Additionally, a franchisee considering opening another store should make sure that they're not just falling prey to a "bigger is better" mentality. Because if a franchisee has opened 4 locations and 2 are losing money, it may end up being less profitable than having one or two stores that they're much more able to capably manage and grow - and ultimately make even more money than they would have made with 4 locations. Without the right systems in place for multi-unit ownership, it can become really difficult for one person to manage the growth of numerous locations, and the great customer service or experience that was once provided with just one or two stores might be an unfortunate casualty.

Location is another factor to consider when owning multiple units. Of course establishing a business in the right area to maximize profits is always key. But it's also good to be aware that the farther apart your franchise locations are from each other, the more challenging it might become to manage properly. Not only that, but distance might impact how much shipping or delivery of retail from your warehouse costs, which could cut into profit margins as well. 

And then there's those unexpected emergencies that might happen when you own more than one store. For example, what happens if one of the stores you've opened is located in a great area, but road construction for several months impacts the flow of customers? Because of this, it's sometimes a good idea to make sure that you have multiple ways to support the business in case of those scenarios that temporarily causes a dip in your profits. To illustrate this concept, consider a business owner who owns several book stores. In order to diversify incomes for unexpected financial situations, this owner also sells books online, hosts school book fairs, and perhaps works as a small publisher for local authors.

In the end, there's sure to be a lot of other valuable decisions to think about before investing the time, energy and monetary resources into multi-unit development. But with careful research, networking with other multiunit franchisees, and attending workshops or conferences, those business owners interested in the potential that this exciting avenue of franchising represents will be better equipped for whatever comes down the road!

Would you like to sign up for our Monthly newsletter? If so, click HERE!

Are you interested in learning how YOU can join the Shear Madness Haircuts for Kids family and run your own successful small business? We are one of the fastest growing kids hair salons in the industry today! If you would like to learn more about this franchise opportunity or small business marketing, great marketing strategies, franchise development, resources for small businesses, how to grow your small business or how to become a successful owner of your own kids hair salon franchise business, please click below or call 1-888-98 GONE MAD

Exploring a Children's Salon Franchise

Topics: franchise buyers, Small Business Franchise Information, Business Tips, successful franchisees, business growth, franchising, franchisee support, franchise research, franchise growth, franchise, franchise success, franchising, franchise success, business ownership, multiunit franchise