Commercial manager at d&t, James Thomas, explains how franchisees can tap into its business planning and funding advice
The recession as a result of the pandemic presents an unusual and unique situation compared with other downturns.
Unlike previous recessions, wages have been supported via the furlough scheme and grants and interest-free loans have been made available, along with various other measures, to prop up businesses and ensure they’re in the best possible shape to survive the crisis.
Lockdowns have forced many operations to close temporarily, so - apart from delivery orders - there have been few ways for people to spend their money. One of our sources in the banking sector recently confirmed levels of consumer saving has never been higher. Potentially, this could mean that the light at the end of the tunnel could be very bright indeed.
As we’ve learned in the past 12 months, it’s impossible to predict the future, but it’s just possible that the moment the economy can get going again safely consumers will have the means and desire to spend big.
Taking advantage of the uplift
Franchises need to be able to take advantage of this uplift. The good news is that as well as cash reserves, people have had plenty of time to rethink their career choices.
For some brands, it could be the perfect time to consider expanding and taking on more franchisees. If so, plan ahead. How many new prospects would you like to take on? What’s gone right and wrong in the past? Now’s the time to fix these processes.
It’s also time to re-evaluate and plan rationalisation strategies, particularly in relation to suppliers.
One of the biggest challenges faced by franchisors is having enough time to support their network. Therefore, bringing services under one roof can save time and budget.
For example, a single provider such as d&t, which offers everything from financial health checks for franchisees, business planning and broker finance to bookkeeping and accountancy services, can relieve some of the pressure faced by franchisors.
We get to know the franchise, so can answer some of the many questions a prospective franchisee may have.
We put support documents in place and reinforce its benefits to the prospect by providing access to all the facts and figures. Knowing the accountancy side of the franchise inside out means we can offer a level of support not found elsewhere.
This recession will result in more business casualties, but largely they will be the ones that were struggling before the crisis.
Our aim is to help franchisees thrive through careful and detailed business planning and providing access to the necessary funding.
At d&t, our friendly, experienced business planning and funding sourcing teams are always happy to advise and help navigate the best way forward for individual franchise owners and franchisors.
Our team add value not just numbers and are trusted to provide the most appropriate advice dependent on individual circumstances.
James Thomas is the commercial manager at d&t.