Business Franchise Australia

A new financial year checklist 

As the world continues to adapt and the business community faces some nervousness regarding economic stability, it’s more important than ever for franchisees and franchisors to take proactive measures to prepare for the financial year ahead. It’s always better to be on the front foot and have a clear picture of key business areas – even if you don’t like what you see. When you’re aware and walking into the new financial year with eyes wide open, it puts you in a much stronger position to prepare, weather the year ahead and see opportunities that may otherwise rush by you.

 

Business Goals Review

Reviewing the previous year’s financial performance is critical but don’t neglect realigning with your business goals. These might be financial, operational, environmental, personal. Is your business still focused on the right outcomes or have you deviated in the past due to underperformance, and sometimes overperformance. Did you take the focus off the core business and its values and what did you set out to achieve. Profit goals will help set sales, expense, and employee objectives for the coming year. What product quality goals do you have? What community goals? Once you’re clear on what you want to achieve you can put together a financial plan to match the outcome. 

 

Develop a strong financial plan

Once you are clear on your business goals, the first step in preparing for the new financial year is to develop a strong financial plan, including reviewing your budgets, cash flow projections and sales forecasts. By taking a data-driven approach to financial planning, you can ensure you have the resources you need to achieve your business goals. Part of this review should also involve looking at current financial systems and processes. Are they working? Do you need to update your accounting software or streamline financial reporting?

 

Embrace technology

The pandemic has accelerated the adoption of technology across all industries and franchises are no exception. From contactless payments to online ordering, technology has become an integral part of the franchising landscape. Wherever you can use technology to increase engagement it will save time and money. Some communication can be totally automated and you should consider automating anything that is repeatable so that it becomes systemised and can’t be overlooked. There may be ways you can use technology to more closely monitor business performance or better analyse customer data. You may also be able to improve your social media strategy to engage with customers, find new customers and build brand loyalty.

 

Focus on customer engagement

In a post-pandemic world, customer engagement is more important than ever, ensuring you’re connecting well with customers when they’re onsite/actively using your services and when they’re not. Are there ways you can improve engagement? Can you offer virtual events, host online classes or workshops or create a loyalty program to reward customers for their continued support. You can also focus on creating more personalised experiences for customers. This could include tailoring promotions and offers to individual customers based on their purchase history or preferences. 

 

Develop/review your crisis plan

The pandemic has shown us that unforeseen events can have a significant impact on businesses. To prepare for the year ahead, develop or review your crisis plan to ensure you’re prepared for any future challenges. A crisis plan should outline the steps you will take in the event of a crisis, such as a natural disaster or economic downturn. Identify key stakeholders, such as franchisees and suppliers, and establish clear lines of communication in the event of a crisis. In the absence of this plan, stress and miscommunication become a normal side effect and employee and customer retention will suffer.

 

Focus on the franchisee-franchisor relationship

Franchisee-franchisor relationships are critical to the success of any franchising business. To prepare for the new financial year, focus on building stronger relationships as there is always room for improvement. This could include providing additional support and training, offering flexible payment terms and collaborating on extra marketing initiatives. Franchisees can also make time to provide more feedback to franchisors. This can help franchisors identifying areas for improvement and address any issues before they have a chance to escalate.

 

Pivot business models

Pivots aren’t always necessary – but you need to ask the question; is our business model still meeting the needs of our current customer base? Franchisors should evaluate their business models and identify areas for improvement. This could include offering new products or services, offering different versions of franchise sites (eg. mini site options), implementing new technology or adopting a hybrid model that combines in-person and online sales, for example. Franchisors can also look for opportunities to expand their business into new markets or regions. 

 

Monitor industry trends

Staying up-to-date with industry trends is an on-going task, but the new financial year is a good time to take stock of the major influences expected to impact your business and your customers over the next 12 months. This includes potential negative impacts but also opportunities in the market that you can take advantage of and prepare for sooner rather than later.

 

Check compliance with regulations

As laws and regulations change, franchisors, in particular, must ensure that their franchise system remains compliant. Conduct an annual review of franchise systems to identify any areas of non-compliance and take corrective action. This could include updating franchise agreements, revising training programs or modifying operational procedures to comply with new regulations.

 

Review brand positioning

Review brand positioning on an annual basis. This includes evaluating marketing messaging, assessing brand perception among consumers and identifying opportunities for growth and differentiation. 

 

Taking the time to assess and evaluate annually can help you identify potential issues and opportunities so you can make the necessary changes to ensure long-term success. Going into the new financial year blindly can lead to missed opportunities, increased expenses and ultimately, lower profitability. 

 

 

John Pirlo is the founder of the Ninja Parc franchise part of the Belgravia Group’s health and fitness portfolio, while also being a multi-site franchisee. The growing national network of indoor Ninja Parc obstacle courses is founded on the belief that movement can be fun and not a chore. Belgravia Health and Fitness supports more than 100 franchise locations across the country.