Five Reasons Why it's Time To Expand Your Business
Have you created a successful business and are wondering what your options are to grow in today’s ‘New Normal’? Like you, many entrepreneurs have created great businesses through hard work, innovation and simply exceeding the needs of customers in a local area. But without access to significant capital, it’s challenging to contemplate growing from a few locations to hundreds or thousands of outlets. You’ve most likely invested hundreds of thousands of dollars to build your business, secured trademarks, developed your brand, documented processes, implemented technology, and hired staff. You have a solid foundation. But in today’s economic environment, when’s the best time to expand and do so in the smartest, risk-controlled way? Here’s 5 reasons why now just might be the best time ever to expand your business:<br />
<strong>1. Expand Your Thinking on Expansion:<br />
You have a great local business. You know you have a product or service that your customers want. Eventually there comes a point when you begin to wonder how to reach more customers. The traditional approach involves raising capital to allow you to open more locations. True, this approach can grow your brand and allow you to reach more customers, but it also means that expanding your business is all up to you. You will be securing and signing for the debt or outside equity and ultimately signing on the dotted line and taking on the increased risk of expansion.<br />
Another avenue for achieving growth in revenues and customers, with limited capital and less risk, is through franchising, though many business owners do not consider it. Franchising is a great vehicle to help you reach more customers, promote your brand, and increase your visibility and credibility as a brand. Opening additional locations on your own could take hundreds of thousands—if not millions—of dollars that are not easy to access through traditional financing today.<br />
<strong>2. Know The Leverage Effect:<br />
In thinking of ways to leverage the large investments you have made already, franchising can be a great way to scale your brand to more markets, building upon those investments and years of fine-tuning that made your business a success locally. Franchising links your expertise and investments as the franchisor with the capital and personal oversight of a franchisee to replicate your model in a new geographical market. You are able to leverage the passion, commitment, and capital of franchisees to deliver your goods and services to more customers across a larger geographic region. You may want to expand regionally, nationally, or globally, and franchising is the least capital-intensive (and most proven) way to do so, with less risk and more upside than any other method of brand expansion.<br />
Launching a franchise brand still requires an additional financial commitment of several hundred thousand dollars by the franchisor to lay and build the franchise system foundation. To open more company-owned locations requires significantly more capital than opening locations through franchising. Given that lenders are facing a stricter regulatory environment, record high and long-lasting unemployment rates, and less business collateral, creativity and innovative ideas are required to figure out the best way to expand with limited access to capital. The beauty of franchising is that the geographical expansion into new markets also uses the capital of the franchisees, in essence allowing the brand to expand using other people’s money.<br />
<strong>3. A National Strategy, Creating Jobs Locally<br />
It’s not just about the the money. In addition to taking less risk in terms of capital investment, franchising mitigates the challenge of trying to take your great local business and manage it in the next state – or 6 states away. Franchising enables great local ownership where business owners invest not just in your concept, but in the community they serve. Franchising spreads the risk between the franchisor and the franchisee. The franchisor has invested in the pilot locations and secured their initial success. By experiencing mistakes and fixing them to develop a solid business model that franchisees can replicate, the franchisor has developed and protected the brand and the systems that the franchisee can license and use in its business.<br />
<strong>4. Succeed and Grow Together<br />
Both the franchisor and the franchisee benefit from this approach. Franchisees invest capital to grow their local business, but they don’t have to spend significant amounts of time and resources to figure out the business. As a franchisor, you’re licensing your knowledge to them. In doing so, you will leverage the investments you have already made in your brand and in your systems. In return, you earn a stable revenue stream, normally based upon the revenue results of your franchisees.<br />
Franchising is also a powerful mechanism for accelerating growth. Franchisees provide new sources of passion, ideas, and capital. Franchisees work hard to build their local businesses and spread the word for the brand and bring great ideas back to make the business model stronger for everyone. Franchising is truly about shared success—growing smart—with less risk than going it alone. Good alone, better together.<br />
<strong>5. Franchising: Be In Business For Yourself, Not By Yourself<br />
The franchisee is acquiring the right to use the brand and the systems to get started much faster and with much stronger resources than they would on their own, and that right has considerable value. Essentially, to be a franchisee is to be in business <em>for</em> but not <em>by</em> yourself. The franchisor benefits in offering this opportunity to a franchisee because it helps offset past, current, and future investments in the brand and in the operating systems. When done right, franchising benefits the company who wants to expand geographically and benefits the franchisee who gets to learn the business and execute the model at the local level.<br />
Launching a franchise system is a big step – it requires evolving your leadership and growing your business from a successful local one to a larger regional, national, or international brand. You had the passion, skills, and determination to get you to here. Yes, you will need to learn new things to grow your business through franchising, but you can do it. You will be the ambassador within your organization that will set the tone and the passion for the huge opportunity that franchising can provide when it is done well and with absolute commitment to the interdependent relationship with your franchisees. Franchising provides a means for you to grow and expand your business, reach more customers, empower others to own their own businesses and create countless jobs. Enjoy the journey!<br />
<em>Shelly Sun is a Certified Franchise Executive and CEO and Co-Founder of <span data-scayt_word="BrightStar" data-scaytid="7">BrightStar</span> Care®, with over</em> <em>200 locations nationwide. She is author of the forthcoming book</em>, Grow Smart, Risk Less: A Low-Capital Path to Multiplying Your Business Through Franchising<em>, which will be released October 4, 2011 and can be pre-ordered from </em><a href="http://www.growsmartrisklessbook.com/" target="_blank"><em><span data-scayt_word="//www.growsmartrisklessbook.com" data-scaytid="1">www.growsmartrisklessbook.com</span></em></a><em>, </em><a href="http://www.amazon.com/" target="_blank"><em><span data-scayt_word="//www.amazon.com" data-scaytid="2">www.amazon.com</span></em></a> <em>and </em><a href="http://www.barnesandnoble.com/" target="_blank"><em><span data-scayt_word="//www.barnesandnoble.com" data-scaytid="3">www.barnesandnoble.com</span></em></a><em>.</em></p>
Marketing matters: from IBM to Kyndryl
Prior to joining Kyndryl as Chief Marketing Officer, Maria had a 25-year career at IBM, most recently as the tech giant’s CMO where she oversaw all marketing professionals and activities across North America, Canada and Latin America. She has held senior global marketing positions in a variety of disciplines and business units across IBM, most notably strategic initiatives in Smarter Cities and Watson Customer Engagement, as well as leading teams in services, business analytics, and mobile and industry solutions. She is known for her work with teams to leverage data, analytics and cloud technologies to build deeper engagements with customers and partners.
With a passion for marketing, business and people, and a recognized expert in data-driven marketing and brand engagement, Maria talks to Business Chief about her new role, her leadership style and what success means to her.
You've recently moved from IBM to Kyndryl, joining as CMO. Tell us about this exciting new role?
I’m Chief Marketing Officer for Kyndryl, the independent company that will be created following the separation from IBM of its Managed Infrastructure Services business, expected to occur by the end of 2021. My role is to plan, develop, and execute Kyndryl's marketing and advertising initiatives. This includes building a company culture and brand identity on which we base our marketing and advertising strategy.
We have an amazing opportunity ahead at Kyndryl to create a company brand that will stand apart in the market by leading with our people first. Once we are an independent company, each Kyndryl employee will advance the vital systems that power human progress. Our people are devoted, restless, empathetic, and anticipatory – key qualities needed as we build on existing customer relationships and cultivate new ones. Our people are at the heart of this business and I am deeply hopeful and excited for our future.
What experiences have helped prepare you for this new opportunity?
I’ve had a very rich and diverse career history at IBM that has lasted 25+ years. I started out in sales but landed explored opportunities at IBM in different roles, business units, geographies, and functions. Marketing and business are my passions and I landed on Marketing because it allowed me to utilize both my left and right brain, bringing together art and science. In college, I was no tonly a business major, but an art major. I love marketing because I can leverage my extensive knowledge of business, while also being able to think openly and creatively.
The opportunities I was given during my time at IBM and my natural curiosity have led me to the path I’m on now and there’s no better next career step than a once-in-a-lifetime-opportunity to help launch a company. The core of my role at Kyndryl is to create a culture centered on our people and growing up in my career at IBM has allowed me to see first-hand how to prioritize people and ensure they are at the heart of progress in everything Kyndryl will do.
How would you describe your leadership style?
I believe that people aren't your greatest assets, they are your only assets. My platform and background for leadership has always been grounded in authenticity to who I am and centered on diversity and inclusion. I immigrated to the US from Chile when I was 10 years old and so I know the power and beauty that comes from leaning into what makes you different from other people, and that's what I want every person in my marketing organization to feel – the value in bringing their most authentic self to work every day. The way our employees feel when they show up for themselves authentically is how they will also show up for our customers, and strong relationships drive growth.
I think this is especially true in light of a world forever changed by the pandemic. Living through such an unprecedented time has reinforced that we are all humans. We can't lead or care for one another without empathy and I think leaders everywhere have been reminded of this.
What’s the best leadership advice you’ve received?
When I was growing up as an immigrant in North Carolina, I often wanted to be just like everyone else. But my mother always told me: Be unique, be memorable – you have an authentic view and experience of the world that no one else will ever have, so don't try to be anyone else but you.
What does success look like to you?
I think the concept of success is multi-faceted. From a career perspective, being in a job where you're respected and appreciated, and where you can see how your contributions are providing value by motivating your teams to be better – that's success! From a personal perspective, there is no greater accomplishment than investing in the next generation. I love mentoring younger professionals – they are the future. I want my legacy as a leader to include providing value in work culture, but also in leaving a personal impact on the lives of professionals who will carry the workforce forward. Finding a position in life with a job and company that offers me a chance at all of that is what success looks like to me.
What advice would you give to your younger self just starting out in the industry?
I've always been a naturally curious person and it's easy for me to over-commit to projects that pique my interest. I've learned over years of practice how to manage that, so to my younger self I’d say… prioritize the things that are most important, and then become amazing at those things.