Whether you’re a solopreneur just starting on your entrepreneurial venture or a seasoned veteran with multiple businesses and your fairshare of employees, your business needs to be built like a franchise. Many service-based business owners have perfected and systematized the deliverable of their service, whether it’s a cleaning business or a tutoring business. They are the expert in delivering that service.
However, many of these businesses lack the systems, processes and automation when it comes to actually running the business. After running my own service-based franchise for 4+ years and scaling it to almost $500k in annual revenue, I figured it out.
By systematizing and automating your business, you are building it like a franchise…putting the right people, processes and systems in place so that you can finally take your business to the next level. Why is this important? For four main reasons:
1. Unlimited Earning Potential – Your income is no longer constrained by the number of hours that you work. You build the machine and it continues to make money, no matter if you are working or not.
2. Freedom – When you’re making more money and your business is rocking, you have the freedom to do whatever you want…play more golf, spend more time with the family or go on that dream vacation. The sky is the limit!
3. Increased Business Value – Every business is going to be sold or transferred some day. When it’s systematized and automated, it is going to sell for MUCH more.
4. Get Back to Your Passion – You can finally re-ignite that passion you had when you started your business. When you no longer have to wear every hat, work 80 hours a week and always be worrying, you finally can have FUN again!
So what does it mean to build your business like a franchise? No matter what you are selling, it is important to systematize everything. Yes, everything…all the way down to how you communicate with your customers. When you systematize everything, it eliminates the margin for error and allows you to finally scale your business.
So why is this important? So your business can thrive WITHOUT YOU! If your business cannot thrive without you, you really just own a job…that probably pays much less and has much more risk then that cushy 9-5 you might have left. When your business can thrive without you, it allows you to spend time working ON your business as well as enjoy the freedom you desired when starting your entrepreneurial venture. With everything systematized, you’ll be well protected when your best worker quits and you won’t have to worry about a steep learning curve when you expand your team.
Here are the Top 6 Ways that you can begin building your business like a franchise:
- Start With The End in Mind – Envision your business 2-3 years down the road when it’s fully automated and running without you. What type of people, processes and systems are in place? What is your role? Are you finally enjoying vacations and family-time without always checking your phone? Sweet! Now starting from 2-3 years down the road, work your way backwards in 3 month increments and set up quarterly goals. Within each quarter, make sure everything you are working on is getting you one step closer to that end goal.
- Systematize EVERY Task – As we said before, no matter the task, systematize it! Take the extra few minutes and do each task the best you can in a repeatable, efficient way. When doing this, always be asking yourself, “would this be easy for someone else to learn if I gave them the right training and support?” Or do you always just “wing it”? Stop winging it!
- Create a Standard Operating Procedures Manual – This is going to be your “how to” manual for dummies. Going forward, every time you do a task, document every little detail. By starting this now, you won’t have to spend as much time training your newly expanding team. When you bring on a new hire, you can simply provide them this SOP manual and they can learn on their own pace while freeing up your time.
- Create Training Videos – Much like the SOP manual, begin to create a training video for every task. If it’s a manual task, get out your smartphone and record how to do this task. It doesn’t have to be fancy, it just has to be functional. If you have any task that’s done on the computer, invest in a screen recording software, like Camtasia (no affiliate), and begin recording every process. These training videos will make it much easier for you to hire new employees and not have to worry about if they are doing it right. They can watch these videos on their own pace, feel more comfortable and learn quicker.
- Hire & Trust Your Team – Now that you have all of your systems in place, it will be much easier to hire (and trust) new employees. By inserting them into a rockin’ system, they have no way to not succeed. If you set expectations and build a culture of accountability, they’ll fit right in. Just be sure to provide them the tools and support they need to succeed. Avoid putting them on an island!
- Stop Doing the Day-to-Day Work – Whatever your business is selling (service, brick & mortar, etc.), stop doing it. It’s time to stop working IN your business so you can stop working ON your business. If you look at the very successful franchises, the owners are absent. The businesses thrives without them IN the business and it becomes a passive income stream. Meanwhile, you can lead the organization and take it to unforeseen heights!
Hopefully these 6 steps get you thinking like a big, bad franchisor so you can finally capitalize on the full potential of your business.