How to manage your business with effective reporting?
Discover the article (excerpts) published on our partner’s website L’Officiel de la Franchise on March 27, 2019, by journalist Eve MENESSON, which mentions our solution and its use by our client BIG FERNAND and includes many of the tips we share with our clients.
"Often seen as an intrusion into their business, franchisees are not very fond of reporting. Yet, when well designed and properly analyzed, it proves to be a true tool for improving the performance of their point of sale."
It’s a mandatory exercise, requested by the franchisor for the calculation of royalties. In reality, it can also prove to be relevant for franchisees, as it allows them to compare turnover, payroll costs, and brand awareness. Reporting can therefore help manage and drive the growth of their location.
The steps to successful reporting:
1. Identify the key indicators to monitor
Virginie Sablé, Head of Franchise and Network Development at KPMG, recommends focusing first on turnover, margins, working capital requirements, and payroll costs in relation to revenue.
“It is also necessary to include indicators specific to the business sector.”
she adds. At Big Fernand, for example, the reporting includes turnover and payroll costs, but also delivery and material costs. Above all, these indicators must align with a genuine strategic objective.
“Reporting must analyze the past to anticipate the future.”
emphasizes Virginie Sablé.
Several recommendations are mentioned regarding the choice of indicators in the original article.
We suggest taking a closer look at the number of new prospects, new clients, and their satisfaction.
The goal is to have an overall view to identify the strengths and weaknesses of the location. This way, you can implement action plans to optimize the store’s performance.
2. Send reports regularly: monthly or quarterly, ideally, to ensure meaningful insights.
3. Automate/streamline report analysis: fast and efficient.
4. Compare data between sales outlets, if you wish.
This is the case at Big Fernand:
“Franchisees get in touch with each other to share advice.”
says Alexe Ravalet, the brand’s Development Director. For her, this transparency in the figures also helps demonstrate the network’s good health to its members, who feel reassured as a result.
