Top tips on how to fuel franchise growth
Crystal Mavroyeni has scaled some pretty dizzy entrepreneurial heights since starting BPO Connect in 2003. The Australia-wide accounting and outsourced bookkeeping firm began ‘almost by accident’ with two staff members – and now employs over 1000 staff. When it comes to safely scaling the growth of a company, Crystal has a thing or two to share. Her work with franchise clients showed how the logistics at head office can drive or hinder the growth of franchisees.
“The business really did start by accident,” says Crystal, who now provides virtual CFOs to businesses across Australia. “It began at university as a side business to help pay some bills. Then it just took off from there.”
People before profit
The learning curve has been partly philosophical for Crystal, who is an advocate of sensitive and slow growth.
“Nowadays we understand that a business is like a plant – if you give it love and care – it grows. It’s when you lose sight of that and are thinking about money and all sorts of other things that it doesn’t work.”
It’s ironic yet inspiring that a company that services the financial requirements of business customers says it’s important to not be too hung up on money.
“We’ve never chased money,” Crystal confirms. “For us it’s always been about looking after the customer, this is what has fuelled our growth.”
These days Crystal and her self-managed local and global teams work closely with franchise clients in particular. And the franchise-fuelled insights have been plentiful.
#1. Pay attention to payroll
“The successful franchises we work with are really big on payroll,” Crystal says. “Franchises have to be all over this, given the negative publicity in this space, let alone the ethics in paying adequately.
“If head office can manage payroll, then a payroll oversight made by a franchisee – such as not realising what the minimum wage is, or not paying a family member as much – is not going to happen. This means the reputation of the wider franchise wouldn’t be damaged.”
Top tip: “Head office should oversee the payroll, to bring more peace of mind.”
#2. Centralise reporting systems
“The head office of our biggest franchise client decided it wanted better and more centralised reporting on everything,” says Crystal.
“Xero effectively gives them a centralised back office service and all the centralised reporting they could want. This really helps with benchmarking, which is so important for franchises. And by being in the cloud, the scale of franchise growth isn’t an issue.
“The other great thing happens after you set these clients up and have done the necessary paperwork,” she says. “You can roll them out as many times as you need, to grow as the franchise network grows.”
Top tip: “Make sure head office and all franchisees are on the cloud; to start as you mean to go on.”
#3. Franchise agreements in focus
“It’s got to the point where some of our franchise clients are saying to franchisees, ‘We really want you to use BPO Group and Xero’.
“This makes a lot of sense from a reporting point of view. Getting a clear franchise agreement in place is critical, with stipulations around expectations and processes – as much as the values and culture.
“And in doing this, you’re supporting the acquisition of new business skills for the franchisee, who may not have a background in business.”
Top tip: “Be absolutely clear in your franchise agreement, to help set your franchisees up for success.”
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Source: Xero Blog
