Franchise owners underwent a tumultuous 2020 due to the COVID-19 pandemic and the resulting economic crisis. Yet, many endured and continue to thrive thanks to the strengths of the franchise business model, which continues to be very attractive for entrepreneurs of all ages and backgrounds.
2021, despite so much uncertainty, offers much hope for franchisees. Here are 5 franchising tips to help your business thrive in 2021 and beyond!
If 2020 taught entrepreneurs anything, it was to be flexible!
Keep your mindset agile in 2021. Look for opportunities to embrace remote work if possible and be ready to pivot quickly. With a lot of uncertainty on the horizon, being adaptable to fast-changing situations and embracing versatility is key.
Ask Your Franchisor for Additional Help
Don’t be afraid to ask your franchisor for additional help if you need it.
The great thing about franchising is that franchise owners, unlike independent small business owners, are never truly on their own. If you’re struggling, see what additional assistance your franchisor can provide to you as soon as you can. Remember – your success is their success and vice versa.
Look to Cut Costs and Save Money
Another key lesson in 2020 for entrepreneurs was the importance of having cash reserves on hand in case of a financial crisis.
Franchisees should look to adopt this same mindset in 2021 and beyond. See where you can trim your business costs by maximizing efficiency, embracing new automation technology, cutting unnecessary expenditures, and lowering your supply and production costs. Use these subsequent savings to build up an emergency cash fund so that your franchise unit can survive the uncertain times ahead.
Watch Your Balance Sheets Carefully
Another one of the key franchising tips to keep in mind for 2021 is to watch your balance sheets carefully.
Nothing is guaranteed in the business world, as too many entrepreneurs found out the hard way in 2020. Going forward, keeping a closer eye on your balance sheets and bottom line can help you better determine where to shift resources and what to prioritize in the new year. The more data you have of your business, the better equipped you’ll be to help it survive the risks ahead.
Strengthen Your Customer Base
Finally, another franchising tip for 2021 is to strengthen your customer base.
Your customers are still your best asset, especially in these tumultuous times. Be sure to prioritize them by developing customer loyalty and rewards programs, work with your franchisor to offer sales and special deals, double-down on providing excellent customer service, engage with them on social media, and boost your local advertising. By cultivating an even stronger relationship with your customers, your franchise can better position itself for success in 2021 and beyond.
Go into 2021 with Confidence!
While 2020 no doubt shook the confidence of countless entrepreneurs, 2021 offers a chance to start fresh. Franchising is still a very attractive option for those looking to get a foothold in the business world, blending the best of independent business ownership with corporate support.
By using these useful tips, your business can not only survive but thrive in 2021. Go into the year with confidence and never doubt yourself as an entrepreneur!