In order to truly understand the concept of franchising, it is necessary to explore the basic concepts of business. There is nothing magical about this. This makes sense in order to clarify the franchise strategy.
Franchising itself is not a business. This is a business strategy. It is a commercial system. This is a significant difference that is not always clear. McDonald's is engaged in the fast food business - although many people think they are really engaged in the real estate business, while others think they are engaged in the entertainment business. Regardless of the discussion, they are not franchise businesses. Schooley Mitchell Telecom Consultants is engaged in telecommunications consulting. Ramada is a business that operates a hotel. Snap-On Tools is the business of sales tools.
Each company uses franchising as its strategy to penetrate and dominate the market. However, their core business involves offering products and services to customers, using franchise strategies to deliver these products and services in a consistent manner. A more in-depth discussion of the concept of franchising will follow, but first we need to delve into the basic concepts of business.
If someone tells you that they are engaged in a franchise business, they don't really get what they are doing. It all depends on the customer, and if the focus is not on the customer and its needs, then there will be problems. Customers do not need franchise rights. They need hamburgers, telecommunications advice, hotel rooms and tools. Therefore, the franchisee is not a franchise business.
It must be about the customer, isn't it? After all, customers pay for everything. They pay wages, they pay rent, they pay utility fees, they pay for the delivery of products or services, and they pay for profits. In companies that use franchise strategies, customers pay royalties, development costs for customer payment systems, including support and operations, and they pay for everything the business does in its day-to-day activities, including franchisors and franchisees.
At Schooley Mitchell, we have a credo that "good" is "great enemy." It's not absolutely original, but we hope that our approach is like this. First, if you want to achieve greatness, you must pay full attention to your customers. We must continue to work hard to make our customers awkward for our services. If we are satisfied with our own goodness, then we will never be great. I want to be great. We hope to be great. Our focus must be on the customer's goal.
Business purpose
Ok, let's look at the purpose and goals of the business, whether the goal is good or not. I don't think anyone is the target of being a bad person, so we will leave it behind. First of all, the basic purpose of business is to make money. This is not the way you give back to humans. This is a charity. Those who want to do business for themselves do this to make money. This should not be a surprise for anyone.
So how do all companies make money? As mentioned above, they focus on the customer. Therefore, the purpose of daily activities, that is, business goals, is to obtain new customers, satisfy customers, maintain customers and develop business through these customers or through these customers.
Acquire, satisfy, maintain and grow. You have it. These are for commercial purposes. They form the first group of concepts we developed at Schooley Mitchell, called our 4 By 4 concept. The other four will be discussed later. You can't think of a deal that happens in the business that isn't one of these four things. The key is to understand that they are four different things. If you want to achieve greatness, each of them needs a different strategy, aiming to achieve excellence in all four areas.
Get
Most people will get this ##; this. This is sales and marketing. Peter Drucker says there are only two things that can create value in business - sales and innovation. The rest are costs.
I recommend that many companies tend to be satisfied with existing customer suites. Or they landed on the "big guy." everything is fine. I also suggest that if there is no constant strategy to continue to attract new customers and get fresh blood, then there will be stagnation. Log in to "Big Man" #39; you can actually put your business in a very unstable position. It is called over-trading. If a source's business relationship is too heavy, then if the customer has a problem, you may face big trouble.
Over-trading solutions, as well as the continual development of stable new customers in order to keep any business alive and moving forward, is to achieve superior "acquisition". Strategy. never give up. This is certainly not rocket science, but it is the basic principle of long-term survival.
GM should always try to figure out how to get a Japanese customer in the 1970s. This will give them an idea of how to keep ' North American customers. Say enough.
Satisfy
Many people really miss this ship. I recently saw a truck driving my car, next to a slogan of bold, bold letters, saying "we deliver satisfied customers." They seem very proud that they actually provide what they are selling. All customers of all companies want to be satisfied, or they will not complete the business transaction first. Boasting customer satisfaction is like saying, "We won't tear you off." Ok, very important, thank you.
Satisfaction must be given. It is necessary for survival. It is certainly one of the four main goals or goals of business, but it is often misunderstood. Satisfaction is what people buy, so they want it to be delivered. Michael Vickers, one of our sales and marketing instructors at Schooley Mitchell, said, "No matter which company, no matter which industry, it sets the standard for customer service, raising the standard for all of us." #39; It's a great message. We must always be alert to the satisfaction of our customers' expectations, and this is an ever-increasing standard. However, nothing can be boasted. This is what you sell.
Robert Kregel wrote in a book titled "If It's Not Broken - Break It!": "Hug the accident. The only thing that doesn't change is that everything will change. Today's skills, knowledge, and The product lives very fast, ages before their time, and dies when young. This letter was an innovation of the 1980s and is now only used when you are not in a hurry." He wrote it 15 years ago. The news. ! This is a clear but still valid sign that we need to constantly redesign to meet customer satisfaction goals.
Keep
If satisfaction is an ever-changing goal and satisfaction requires ever-increasing efforts and commitments, then it is not just the satisfaction of the customer. Customers expect satisfaction. They buy satisfaction. People will copy satisfaction. If this is everything that is provided, then it comes down to price, no matter what business is on hand, it's a failed game. Therefore, in order to maintain a long-term trust relationship, it is necessary to provide more strategies than customers to purchase. Michael Wicks said it wants to "use standard services and improve its level." This defines the strategy that companies must adopt. Neglecting this will again cause stagnation or slander.
Growth
Most of us have heard that doing more business with existing customers is cheaper than getting new customers. I believe that you must do both.
In order to do more business with existing customers, a consistent strategy must be developed to educate them about new products and services. In addition, you must understand their business, especially when the business changes, in order to be able to provide your products and services. You must also put your practice into practice to find more business. Complacency is often the norm when opportunities are placed before us. Implement the process to ensure that companies managing these things continue to grow their business through growth strategies.
Growth strategies also include requiring existing customers to support your business growth through others. Surprisingly, how many people are willing to help if asked to do so. Referrals, letters of recommendation, consent as a reference, and introduction of their connections are the result of this strategy.
So you have it. This is the four basic goals of any business. Business needs strategies and formulas to continually acquire new customers and meet them, which is a hint and demanding standard to keep them, and this requires more than just providing what you get and developing business with them or their help. These are the basic concepts of business and they must be at the heart of every good business and every good franchise system. Assessing the franchise system should include assessing the extent to which the franchisor understands these concepts and how they implement strategies to achieve these concepts.
Get a free copy of an e-book called "Legal Opportunity - Make the Right Decision." Author: Dennis Schooley, please send an email to corp@schooleymitchell.com.
Orignal From: Basic concepts of franchising and business
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