The turbulent times thunder is in full swing in our economy, yes, we are experiencing tornadic storm cells and Cumulo Nimbus in a way we have not seen in decades. Some say we are now in the eye of the storm and there is more to come.
Many large corporations are downsizing, closing locations and outlets and laying-off huge numbers of employees. Some of the top corporations on the Dow have announced that they are laying of 10s of thousands of people, Volkswagen squareback but is downsizing your company at the bottom of the business cycle really a wise choice?
Often corporations grow too large and bureaucratic and are unable to perform at the unit level due to all the rules and procedures put into place by the corporate office. As the unit level outlets underperform and fail to make same store sales numbers, those CFOs with sharp pencils are determined to cut the non-performers.
Rather than axing store outlets or closing locations, they really ought to consider selling these locations as franchise units. Why? Because when the manager of an outlet is an owner, things change fast, all of a sudden there is more urgency and "buy-in" and there is more will to succeed and turn a profit.
There is perhaps no greater incentive than ownership to get a business to perform. When those running the outlet have their own money involved, it is just amazing what a formerly underperforming store can do in the way of volume, same store sales figures and profit.
Amazingly enough, this is no secret to corporate executives, so it's a wonder more of them do not turn towards franchising as a way to build brand, sell more products and keep from downsizing in downward sector rotations in their industries. Think on this.
"Lance Winslow" - Franchising Resource . If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/.
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