Franchising Today - Fall 2016 - 18

Column by Danny Hanlon

BUDGET BEATING
aSk The FranchiSeeS whaT growTh, challengeS and
opporTuniTieS They anTicipaTe in The coming year.

WINNING
TAKESA PLANNING.,
Winning takes planning.
Five years ago, it dawned on us that
consultative approach to helping
franchisees reach their goals can help
them immensely.
This formula is helping to not only
transform franchisees but help them
achieve what they first set out to do.
Many years ago, our approach to
budgeting worked like this: I locked
myself away with our financial controller and we would review last
year's revenue by franchise location,
estimate a level of growth for that
location, add all those locations' estimates together and presto, you had
a budget!

this process was back-to-front. We
decided to flip it, and rather than us
deciding on our franchisees' growth,
we asked them what growth, challenges and opportunities they anticipated in the coming year.
This simple question encouraged
a lot of discussions and ideas among
franchisees, so much so that we now
foster a collaborative approach to
annual budgeting and goal-setting,
which most importantly ensures
buy-in at a franchisee level. This is
immensely important to achieve the
goals they set out for themselves.

The Four-STep Formula
1. Business planning workshops -
Each September is budgeting season. We put on regional business
planning workshops to help our
franchisees with their annual forecasting. The day is divided into two
sections. In the morning, we recap
the fundamentals within financial
statements, namely the profit and
loss (P&L), cash flow and the balance sheet. We study key financial
performance indicators (FPIs)
such as liquidity, surplus resources
and gearing percentage.
In the afternoon, we begin to
build a budget for the forthcoming year. This workshop provides
franchisees with an opportunity
to step out of the day-to-day and
focus on profitability and planning for growth.
2. Annual operational plan - Collect-

A collaborative approach with the
franchisor to budgeting and goal-setting
ensures buy-in at a franchisee level.

18

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FALL 2016


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Table of Contents for the Digital Edition of Franchising Today - Fall 2016

Contents
Franchising Today - Fall 2016 - Cover1
Franchising Today - Fall 2016 - Cover2
Franchising Today - Fall 2016 - 1
Franchising Today - Fall 2016 - Contents
Franchising Today - Fall 2016 - 3
Franchising Today - Fall 2016 - 4
Franchising Today - Fall 2016 - 5
Franchising Today - Fall 2016 - 6
Franchising Today - Fall 2016 - 7
Franchising Today - Fall 2016 - 8
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Franchising Today - Fall 2016 - 15
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Franchising Today - Fall 2016 - 17
Franchising Today - Fall 2016 - 18
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Franchising Today - Fall 2016 - 37
Franchising Today - Fall 2016 - 38
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Franchising Today - Fall 2016 - 40
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Franchising Today - Fall 2016 - 49
Franchising Today - Fall 2016 - 50
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Franchising Today - Fall 2016 - Cover3
Franchising Today - Fall 2016 - Cover4
http://www.nxtbook.com/nxtbooks/knighthouse/ft_2020_vol5issue1a
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http://www.nxtbook.com/nxtbooks/knighthouse/ft_2019_vol4issue3b
http://www.nxtbook.com/nxtbooks/knighthouse/ft_2019_vol4issue3a
http://www.nxtbook.com/nxtbooks/knighthouse/ft_2019_vol4issue2
http://www.nxtbook.com/nxtbooks/knighthouse/ft_2019_vol4issue2b
http://www.nxtbook.com/nxtbooks/knighthouse/ft_2019_vol4issue2a
http://www.nxtbook.com/nxtbooks/knighthouse/ft_2019_vol4issue1
http://www.nxtbook.com/nxtbooks/knighthouse/ft_2019_vol4issue1a
http://www.nxtbook.com/nxtbooks/knighthouse/ft_2018_vol3issue4
http://www.nxtbook.com/nxtbooks/knighthouse/ft_2018_vol3issue3
http://www.nxtbook.com/nxtbooks/knighthouse/ft_2018_vol3issue2
http://www.nxtbook.com/nxtbooks/knighthouse/ft_2018_vol3issue1
http://www.nxtbook.com/nxtbooks/knighthouse/ft_2017winter
http://www.nxtbook.com/nxtbooks/knighthouse/ft_2017fall
http://www.nxtbook.com/nxtbooks/knighthouse/ft_2017summer
http://www.nxtbook.com/nxtbooks/knighthouse/ft_2017spring
http://www.nxtbook.com/nxtbooks/knighthouse/ft_2016winter
http://www.nxtbook.com/nxtbooks/knighthouse/ft_2016fall
http://www.nxtbook.com/nxtbooks/knighthouse/ft_2016summer
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