While it is often true that if you own a franchise you have tons of corporate support, in most cases that does not mean you are free and clear from financial responsibility. You also have to answer to corporate, and they will want to see a healthy, thriving business. Here are five financial tips to make sure that is the case.
Keep Things in Order
Meet all financial statement deadlines with professional reports. Offer all of the information asked for, and generally extras are not required but welcome. Corporate likes to hear all the good stuff, and it will help you if your business runs into hard times later on.
Get on top of financial information and stay on top. If you do not keep up with it yourself, do not just blindly pass reports from the CPA on to corporate. Read them and make sure you understand them so that you can anticipate and answer any questions that may arise. This may mean calling and asking your accountant to explain a few things, and that is okay. If someone from the franchise calls with a question, they want to know that you know what is going on.
Get Help If Needed
If you are not qualified or do not have time to keep the books or do the taxes, enlist someone that is and does. A CPA can be your greatest financial ally. You may even need to hire someone to work with the CPA for you. Record keeping, paying bills, and other financial duties have to be handled in a timely manner, and if you cannot do it you need to find someone who can.
Some franchisees have very little wiggle room. However, if you do have some control over menu items, products, or service options, pay attention to what customers want and make decisions accordingly. Exercise any control you may have in order to make your business the best it can be.
Financing is a necessary evil when it comes to any business. When you need franchise financing, big banks aren’t the only source of funding. Biz2Credit.com has arranged millions of dollars in franchise loans and can put borrowers in touch with regional banks (no matter where they are located), credit unions, and alternative lenders who are willing to provide funding. They often offer products and terms that are much friendlier to small business growth than “brand name” big banks offer.
Franchisees have a somewhat unique predicament in that they own their own business, but they must still answer to certain powers that be. These financial tips should help franchise owners stay on top of their game and keep both customers and corporate happy.
This article was submitted by Faith Stewart. Faith Stewart has a BBA with a major in accounting and spent 10 years working in the various aspects of accounting and finance before pursuing her passion for writing.