Broad-based SA retail franchising operations will weather the 2015 economic storm Simone Cooper South Africa’s retail franchising sector is currently enduring the country’s economic downturn and performing strongly, mainly due to the widespread franchising opportunities that penetrate virtually all sectors of the economy. This strong performance is expected to continue in 2015 and beyond, predicts Standard Bank.  Although many South Africans automatically associate franchising with accessible, quick-service restaurant brands, the vast retail sector has several sub-divisions in which franchising is active. They range from the delivery of personal services to convenience stores, grocery outlets, clothing and even the delivery of professional services such as optometry, says Simone Cooper, Head of Franchising and Enterprise Development at Standard Bank.  “The primary strength of the South African franchise industry lies in this diversification. It gives the sector the ...

Planning and research key when investing in a franchise Buying a franchise can be quite expensive, especially if you are considering linking up with a franchisor that represents an internationally respected brand which is already a household name. As a result, there are very few entrepreneurs that can afford to completely finance the franchise from their own resources.  Simone Cooper, Head of Franchising and Enterprise Development at Standard Bank, says many franchisors require potential franchisees to make a substantial unencumbered upfront payment as part of the business process. There are two main reasons for this. Firstly, the contribution helps to make franchises more viable, and ensures that the debt is reduced to manageable levels, something that is vital when initial cash flow is slow as the business finds its feet. Secondly, a franchisee investing his or her own money in a store is making a commitment to its success; something that makes a franchisor and the bank comfo...

‘Staff smarts’ can give a franchise ‘star’ status Getting to grips with the pro and cons of managing staff effectively is vital to the success of a franchise   The most valuable asset in any franchise is its people. It is people that drive admin, control systems and provide the service, build efficient teams and help to keep customers coming back for more. Ignoring staff needs and failing to acknowledge and reward them can potentially harm a franchise.  “If you are buying a new franchise and selecting your own staff, or acquiring an existing outlet with staff, getting to grips with employee issues is vital. It is critical that the right people are in the right positions and that the staffing process is accomplished as quickly and effectively as possible,” says Simone Cooper, Head of Franchising and Enterprise Development at Standard Bank. “Sorting out employee issues is time-consuming and can even be intimidating, but you can usually get advice, tips and possible sta...

Building a growing franchise means always planning for the future Simone Cooper Change is the only constant in business and franchising. The ability to meet the challenges posed by change and keeping a franchise growing requires all franchisees to acquire planning and goal setting skills.  Fortunately, franchisees are able to lean on the expertise available from franchisors and also obtain information and assistance from their financial advisor when they need it, says Simone Cooper, Head of Franchising and Enterprise Development at Standard Bank.  “However, there is no substitute for local knowledge. It is a franchisee’s knowledge that puts him or her in the best position to identify what strategies should be considered when planning for future growth,” says Ms. Cooper. Planning for a prosperous future requires three growth strategies to be considered:  Setting growth targets: Setting short-term and medium-term growth targets for the enterprise. Setting ta...

Better time management leads to improved business results Simone Cooper When running a franchise you expect the business to operate perfectly so that all opportunities of making profit are exploited. However, as we all know, achieving perfection means splitting your efforts over many activities, which often requires time.  “Running a successful franchise really means being someone who knows when to delegate, structuring your working day and paying attention to the jobs that matter,” says Simone Cooper, Head of Franchising at Standard Bank, adding that success is really achieved through effective time management.  Time management is defined as taking conscious control over time spent on various activities. Spending too much time on a task that may not really require the effort you are putting in is considered time wasting.  “Mastering the art of time management is a skill that brings immediate benefits to people and business,” says Ms. Cooper. This is because: ...