I’ve worked with many franchise owners and I’ve found them to be a passionate group. Most have left Corporate America and are very focused on succeeding. That includes putting in whatever number of hours it takes to succeed.
Improved technology allows these owners to manage their businesses remotely. They can reduce the number of hours in the physical location. A franchise owner can “know precisely when workers clock in and out, who each of his daily customers are and which employees are selling what products, at regular price, or discount.” All this can be accomplished through software, laptops and Treos. At fact, this new method of managing business allows one owner to manage multiple locations more efficiently.
Remote management comes with a risk: less time in the store means the owner can’t deal with problems as quickly, particularly when those problems involve staffing (hiring/ firing/ managing). Finally, the profit margins on franchises may not increase, simply due to the use of better technology.
The Lesson: Technology can help any owner operate more efficiently, but business risks and profitability may remain the same.
Your Homework: What was your last technology purchase? Has it made you more productive?
(Source: “Why Running a Franchise is Getting Easier”, Wall Street Journal, 6/25/07)
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