フランチャイズを活用した後継者育成の手法 | フランチャイズニュース

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A method of developing successors using franchising

2018/08/21(Sender: FC Owners Operations Office)

  • Helpful information image 1

It is said that the main jobs of a business owner are "strategy planning" and "human resource development." Among these, the most troublesome is probably "successor development."

This time, we will explain how to solve the problem of successor development by utilizing franchising.

A successor = the next president.

In other words, the successor needs to possess the same level of knowledge, insight, and initiative as the president. However, it is difficult to expect someone to "immediately acquire everything" that the current president has cultivated over decades.

So, what is the quickest way to teach a successor what the president has experienced?

That is, starting a new business in a completely different industry.

By gaining experience in starting a new business in a different industry, one can practice management from scratch.However, starting a business in a completely different industry requires a great deal of effort and time.

Therefore, joining a franchise is the quickest way to tackle a "new business in a different industry".

Operation → Management Steps: The Appeal of Franchising

In the case of franchising,

  • • The business model is already established.
  • • There are manuals on what kind of personnel to hire and how to operate.
  • • There are manuals on what kind of location to open a store in and what kind of customer attraction is effective.

However,

  • - Create a business plan and secure financing from financial institutions
  • - Find a location to open a store and open the store
  • - Hire staff and train them to operate according to the manual
  • - Attract customers and manage the business to ensure profitability

The practical aspects of "management," such as these, will be handled by the next manager.

In other words,

  • - Hiring and training staff
  • - Making the business profitable

It will be possible to gain practical experience in these essential aspects of "management" through hands-on work.

By taking on a franchise that is already a complete package, the next manager can first focus on the "operation" of that package.

Once you have experienced all the necessary practical work in "operation," you will then start to think about things from a higher level perspective that is not in the package, such as how to make the business even better, how to increase profitability, etc.

This is "management."

In other words, by first taking on a franchise, you can gain practical experience by "operating = doing" what is in the package manual, and then gain experience in developing "management skills" by thinking about and creating something beyond the package manual.

This will be a valuable experience when you actually become a manager, as it will enable you to perform "existing tasks" as a matter of course in your main business, and to think about how to "make the business even better" and "increase profits."

Furthermore, in the case of a franchise,

  • ・Before starting the business, you can grasp the "projected income and expenditure simulation," making it easier to judge whether the successor's "management" is going well or not.
  • ・Even if it doesn't go well, the risks are easier to anticipate.

These are some of the advantages.

Moreover,the biggest advantage of joining a franchise is that you can "immediately start a new business in a different industry."

By joining a franchise, you can skip the most time-consuming parts, such as developing new products and creating new business models, and focus on practicing "management."

In other words,the fastest way to train the next successor might be to "start a franchise, launch a new business, and make it a success."

■Franchising can also act as an internal buffer

Many business owners may be considering making their sons their next successors.

However, if you appoint someone as a department head or executive without any track record, it can lead to jealousy from long-serving employees. Similarly, if you appoint someone as the next manager simply because they are related, even if they are incompetent, it can cause friction with long-serving employees.

In this respect, by engaging in franchising and appointing them to be in charge of a business completely different from the existing business, they will be in a completely separate department from long-serving employees, which can create a situation where jealousy and harassment are less likely to occur.

Furthermore, by creating a track record as a business unit head who has successfully managed a "franchise business," and appointing them as the next successor, the next successor will gain confidence in "management," it will set a good example for long-serving employees, and it can be expected that a system will be in place to make it easier to welcome them as the next successor.

Of course, if you still have time before handing over the baton to your successor, or if your successor already possesses management capabilities, there may be other methods.

However, if you have concerns such as "I have a successor candidate, but I am not yet confident in entrusting the management to them," or "I want to hand over the baton to a successor within the next 3 to 5 years," then we recommend utilizing "franchising" to develop your successor.