Here Is How Franchisors Can Increase Their Profit Margin
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Franchisors usually believe that there are only two ways of increasing the profit margins, cutting the cost and increasing the prices. But most of the time, it’s not possible. So the question still remains that how are you going to increase your profit margin?
Most franchise owners give up after facing the above-mentioned scenarios, considering that profit margins are set in stone. However, there are other industry people who are learning how to staff people at right time, training employees to cut down waste, and learning how to reduce turnover rates, significantly cutting costs.
Never assume that your employees are happy
According to Business Insider, 80 percent of people are dissatisfied with their jobs. Franchisors need to communicate with their employees regularly, creating a sense of caring among them. You need to step out of your shoes, understanding how your staffs exactly feel when you are around. Encourage feedback and monthly surveys to determine what you can do to make your employees happier.
Paycheck is not always the problem
Assuming that your staffs want a higher paycheck can prove you wrong. Many staffs leave for reasons other than money. So if money isn’t the issue, what is causing them to retire? Franchisors should create a better environment, as they spend maximum hours at work. Since they spend so much time at work, try creating an environment where they want to be. Make sure that they are carrying their heart to the workplace, which will eventually help your business achieve success.
Opportunities for growth are essential to provide personal fulfillment. One of the big reasons why staffs leave is because there aren’t enough opportunities for growth. Being considered as a key reward, franchisors need to provide opportunities for them to advance, making them stay with your business, staying engaged.
This article was originally published on Franchise India by Shahram Warsi.