It is well known that franchise businesses fail at a rate far lower then the national average. This is due to the fact that franchises have successful processes already in place. Franchises are concerned about scaling and systematic growth, not success of their business concepts which has already been proven.
- The number of franchise establishments will grow this year by 12,111, or 1.6 percent, to 781,794.
- Economic output from franchise businesses is estimated to increase by 5.4 percent over last year to $889 billion.
- The gross domestic product of the franchise sector is projected to rise by 5.1 percent this year, which is faster than the 4.9 percent GDP increase forecasted for the economy as a whole.
- The franchise sector will contribute about 3 percent of the U.S. GDP in 2015. *Stats taken from IFA (International Franchise Association site Franchise.org)
What can small-medium businesses learn from Franchise success?
The # 1 thing: Implement Processes!
Specifically standardized lead management. Soffront CRM is a great tool to facilitate processes (whether franchise-wide or just the individual local shop owner). Soffront CRM technology allows for incoming leads (captured by website, newsletters, or call ins) to be tagged and tracked and classified into a certain workflow stage. A workflow can contain multiple customized stages, each with it’s own series of tasks that must be accomplished before the lead is allowed to jump to the next stage. This is a way of instituting the same process for every single lead.