Grow your business with a franchise prototype part 2

Navigating the complexities of business expansion requires more than ambition. A well-planned process and SOPs must be implemented. This article details how you can implement both in your business and make them scalable as the backbone of operational excellence.

documented process

A lack of documented processes gets most entrepreneurs into trouble. According to an IDC study, 75.9% of companies experienced a significant business risk or compliance incident and suffered severe consequences for document process violations.

So how should you think about your documented processes? You need to perform what I call the business jury test. In other words, if a disgruntled customer takes you to court and you undergo discovery by a law firm, will your standard documented processes pass the test? Always have a clear way of doing business. Can you prove that you have a clear understanding of the requirements for customers and employees to do business with you in an easy-to-understand way, and document all processes so that a jury can understand them? is needed.

Use simple language and clearly define what employees are supposed to do and when their work will be completed. Be clear about which metrics are related to employees’ job performance and which metrics employees are responsible for.

When creating a customer process, outline from the beginning what the customer will get in exchange for their money and how they can exit the relationship if they choose.

Creating SOPs for your business

No business is too small to create an SOP. These steps will allow you to recreate the same experience, quality, and standards as your product or service-based business. A solopreneur creates her SOP to maintain consistency in services and products and to help if she wants to sell her business.

Why are franchised businesses able to sell at higher multiples than independent businesses? There’s the brand, but there’s also the fact that they have a structured way to consistently deliver on the brand promise. Researchers at the Rinker School found that the selling price of a franchise business is 1.5 times that of an independent business. This is also due to his SOP. SOPs allow business owners to quickly replicate and scale without significant operational errors.

Case Study

NSKT, a global consulting firm, was hired by a construction company called Build Pro to help implement the SOP. Build Pro needed more visibility, training and onboarding, safety and incident mitigation, and efficient processes.

NSKT has developed SOPs in several key areas of Build Pro operations. Specifically, we developed procedures for regulatory compliance, change order management, material procurement, quality control and testing, employee retention, and satisfaction, among many other SOPs.

Is it the result of their efforts? Build Pro reduced project delays by 25%, increased overall productivity by 30%, and reduced safety incidents by 40%.

Spend time creating added value for your business

Businesses like franchises provide added value to owners, employees, and customers. If you want to build a company that sells and gains brand recognition, you need to add as much value as possible to what you offer.

The Corporate Finance Institute defines value added as “the additional value created above and beyond the original value of something.” This can be applied to products, services, companies, management, and other business areas. In other words, it is an enhancement made by the company. Provides businesses/individuals with products or services before being sold to end customers. ”

In Part 3 of this series, we’ll discuss where you can add value to your existing business’ services and products, and how to decide if it’s worth adding.