Growth is a double-edged sword in a franchise business. The more partnerships and locations the business takes on the more complex and confusing financial management becomes. As a result, every step forward makes the next step less likely.
The good news is that the pain points that put growth at risk are entirely preventable. The most important step is to identify the nature and cause of the problems. Finding the right solution becomes much easier afterwards. In order to put your franchise on firm financial footing, look for these common obstacles:
Spreadsheets are a great beginner’s tool, but as businesses grow they become inadequate and unwieldy. Business operations slow down, manual data management eats up time, and clarity and organization suffer. The longer growing businesses rely primarily on spreadsheets, the less effective financial management becomes.
As the size of a franchise grows so does the need for accurate financial reporting. Unfortunately, finding and analyzing the necessary data is time and labor-intensive. Businesses are forced to choose between slow reporting or inaccurate/unreliable reporting, neither of which are suitable when trying to sustain and swell growth.
Franchises must make an ongoing effort to consolidate ever-expanding assets under a single umbrella. Unfortunately, this requires huge amounts of manual input and is ripe for errors, omissions, and oversights. This is another clear instance where franchises become victims of their own success.
In order to remain relevant in competitive industries, franchises must be flexible and innovative. When they utilize on-premises software, however, their options are often constrained by outdated and irrelevant features. At exactly the time when speed and agility are necessary, older tech tools prove to be an obstacle.
Most franchises rely on a toolkit of various technologies. Those are most effective when they can easily exchange data, but many silo off information and make collaboration between systems difficult or impossible. This situation is frustrating when franchises are small, but it’s untenable as they start to grow. Once again, something intended to be a tool only hurts the franchise.
Franchises that suffer from some or all of these pain points want to implement the most comprehensive solutions possible. And that is why so many of them rely on Sage Intacct.
No matter how large or complex the franchise grows, data is kept organized, accessible, up-to-date, and accurate. And with smart features and functions built in, it’s faster and easier to turn data into insights. Sage Intacct take the brakes off growth and hits the accelerator instead.
When you’re ready to embrace an enterprise-wide solution, consult with blumshapiro.