5 reasons your franchise network sales aren't going up
/If you’re not seeing growth in franchise network revenue then you may have a problem. Of course, sales growth isn’t everything, but static sales will eventually lead to decline. And that is likely to lead to trouble for your franchise network.
This topic matters because the Australian economy hs been weak for a long time. With low inflation and low growth, there are no free rides when it comes to sales growth. If you want to grow the top line you’ll need to take business from a competitor or create new demand.
As the accountant in your leadership team, you’re likely to spot the trends in the numbers and be the person bold enough to ask the awkward questions.
To help you get to the heart of the issue, here are 5 questions to address (hopefully in a forthright way)
Have we clearly defined our revenue growth target?
Do our franchisees know the growth targets and how these apply to them?
Is our advertising spend producing results in terms of leads? If we’re getting leads and they aren’t converting, what do we need to do?
Are we leaving too much to the franchisees, relying on them to drive the top line without us taking responsibility?
Do our franchisees know how to build sales? Do they have the resources they need and know how to use them? How can we better help them in this?
Part of the CFO’s role in a business is to help people interrogate the numbers and to ask good questions. We hope these questions are helpful in your franchise.