There is not really any facet of business in today's workplace that has not been affected in some form or fashion (and usually adversely) by the current economic climate.  Rising fuel and energy costs combined with an extremely soft real estate market have forced many small business owners to find ways to cut costs and be more creative when it comes to attracting and retaining customers.

 

That being said, there are specific steps for franchisees to follow to help them run their businesses more effectively. 

 

Step #1: Slow down and plan

Most franchisees and small business owners tend to be type A personalities.  And when things aren't going as planned, the tendency is to work harder.  Well, that is not always the answer.  In fact, franchisees should come up with a 1 year game plan divided into 90 day action plans and be sure to keep all of their employees invovled with the action and implementation of these plans. 

 

Step #2: Marketing

Marketing involves involves attracting, serving and retaining customers and it should be Priority #1 no matter what the current economic situation.  In hard times, franchisees must be sure to retain the customers they have and then worry about adding to that base.  Often times, the efforts to attract new customers during tough economic times will cause the franchisee to overlook and maybe even neglect the customer base that he has.

 

Step #3 Refocus

Franchise owners must make sure that every employee knows his or her role.  Further, employees should be educated on the reality of the situation, fully understand the challenges that the company faces and then be given the plan from the franchise owner on how the company plans to steer through these tough times.  Franchisees can not maintain a "business as usual" approach to successfully deal with trying economic circumstances.

 

Step #4 Ask Others For Help

One of the greatest benefits of the franchise system is the ability to communicate with other fellow business owners operating the same business model.  And chances are that they are struggling with the same challenges as other franchisees.  Also, corporate headquarters can serve as a resource for solutions to problems.

 

Step #5 Tough Decisions

Tough decisions will be required of the franchise owner during tough economic times.  These decisions will range from cutting loose an underperforming employee, changing a sales campaign, allocating more money to sales and marketing and even having some employees move to the front line of sales during the rough crunch.  Also, costs will have to be reduced and vendor contracts will have to be reassessed to ensure that the franchise is operating at its highest efficiency possible.