- Develop a highly-focused business strategy. A well-defined strategy that offers sustainable growth and value-creation opportunities are key elements to business success. Help drive top-line growth through innovative product offerings, targeted marketing strategies and an aggressive, yet realistic, growth schedule for your franchise. Moreover, aim to capture bottom-line profitability through a consistent focus on cost containment and a healthy debt profile, among other aspects.
- Surround yourself with people better than you. Your corporate management team will serve as the backbone for all business decisions and strategic initiatives during the course of developing your franchise. Build a team comprised of experienced industry executives that excel in varying areas of expertise, including finance, operations, marketing, among others. These individuals are the ones who will continue to instill the discipline and unwavering focus necessary to succeed.
- Choose committed franchisees. Strive to find the strongest operators for your franchise as they will be reflecting your brand and upholding your commitment to quality. A franchisee with close ties with the community represents a good opportunity for your franchise based on their knowledge of local economic conditions and consumer preferences. Most importantly, maintain close connections with your franchisees in order to build a strong network of individuals who are highly-committed and interested in the development and long-term health of your business.
- Provide highly-structured training programs. Whether it be corporate or franchise employees, a highly-structure training program is key in driving personal and professional growth within your system. Create well-rounded employees through demonstrations on business best practices, including people management, sales, marketing and accounting, while also emphasizing consistent, high-quality operations, procedures and service. Additionally, provide professional goal setting and evaluation programs designed to clearly outline the steps necessary for employees to reach success. Through continuous training programs, the skills learned will transfer into providing customers a better overall experience.
Woods Staton, chairman and CEO of Arcos Dorados, operator and grantor of McDonald’s franchises throughout Latin America and the Caribbean, offers the following tips on how to successfully build a franchise in Latin America while staying true to the brand’s core objectives: