Why You Need To Set Goals For Your Franchise (And How To Do It)
When you buy a franchise, you want it to succeed. And the more specific your plan for success is, the higher chance you have of achieving it. Franchise business goals are essential motivators for any business leader.
Although you’re taking on a tried-and-tested model for earnings and growth, you still need to ensure you’re competitive, innovative and sustainable as time goes by. That’s why setting goals is important in business. You have definable objectives that allow you to see what’s working, step by step, towards an endpoint – which then leads you to new goals.
Let’s take a deeper dive into the reasons for setting aims (and how to do it) as your franchise gets off the ground.
It helps to measure success
Achievements are nothing without a way to measure them. You may think you are doing well, but the reality could be different… Measurements are the only way to ensure you’ve truly been successful.
It’s all about clarity. What matters to your business the most, in terms of service, sales and smart management? Furthermore, how does this change over time?
Early on, you may just want to give yourself a decent wage, with one or two staff on board and all the operating costs covered. You’ll have to serve a certain number of customers every day to make that happen. Time should be saved to acquire new business too.
Later, growth has to be matched with more revenue. You want to steadily increase net profit while hiring more people to achieve it, without diluting the quality of your business offering.
Before you start, create short and long-term targets for the following:
- Income – Define what you want to earn over several months or years, with wages, sales figures and running costs rising in line with investments and growth.
- Directives – These are the precise activities that build revenue. A minimum and a maximum number of customers served by week and month, for example, keeps the larger plan on track.
- Time management – How much do you personally want to work each day? Choose something you’re comfortable with – for instance, putting in more hours when you begin and easing down after six months.
By sticking to these targets, you’ll help avoid burnout, cash flow issues or a pressured workforce.
It encourages business productivity
While we all work differently, there’s no arguing with stats and numbers. Having clearly defined franchise business goals is a great team motivator and helps focus everyone towards the same ultimate objective.
Targets are vital to team strategy meetings, for example, because they show everyone where to improve – or where they did a job well done. Great leaders give both praise and constructive feedback.
After a few weeks or months of setting goals, you’ll begin to see a pattern emerge. You can then test the team’s capabilities against various measures (like speed, quality, cost) until you hit a sweet spot, and everyone is doing their best.
Almost a third of UK workers in a 2018 survey said they were unmotivated at work – a rise on the previous year. Defined, evolving benchmarks give people purpose and let you all celebrate when their hard work pays off, which energises your team.
It allows you to monitor business progress
Above all, targets need to be laid out as early as possible. They should be defined and communicated as soon as the very first days of your franchising journey so that progress towards them can be more accurately monitored.
However, sticking to a totally rigid plan is never a good idea. According to a Harvard Business Review article, 29% of organisations “can’t seize fleeting opportunities or mitigate emerging threats” due to a lack of agility. They can’t change fast enough to capitalise on a new market, for instance, or rival another competitor who’s moved into the same territory.
Ideally, then, you must have a foundation for success that can still be altered if necessary. Review your progress every month, and then every quarter. This reveals where the business may improve and where goals can be re-evaluated. Resources can then be driven from a high-performing area to one that needs more support. In this way, when you review again, you can see how any incremental changes have had an effect.
Follow the ‘S.M.A.R.T.’ formula to set winning goals
The S.M.A.R.T. acronym helps with setting franchise business goals. Each letter stands for certain elements:
- Specific – The goal should include the precise things you will do, over an exact time period, to hit a clear target.
- Measurable – There should be milestones along the way that will give evidence that you’re working towards achieving (or have achieved) your goal.
- Attainable – The end result has to be realistic. Analyse the resources you currently have and don’t overshoot or try to expand your targets too quickly.
- Relevant – Every goal, however small, must slot into your broader objectives. You should be able to see how it has influenced things as you measure business success.
- Timely – Break the goal down into several deadlines to ensure everyone stays on track along the way.
When you’re designing a tactic, reference it against these points. List them out and fill in the blanks until you have a well-structured and trackable goal.
Continue on the path to franchise success
Hopefully, we’ve now armed you with all the reasons why setting goals is important in business.
For start-up franchises, it’s crucial to define what you want to accomplish. Small moves can add up to big wins, spurring you and your workforce on towards success. Along the way, you can look back, compare, and plan ahead to create an earning model that’s built to last.
Ready to get started creating your own goals? Rainbow International currently has a range of franchise opportunities available. With an intensive training course and launch support programme, as well as a franchisee network to lean on for advice, we can give you the tools you need to succeed. Speak to a representative today.