Discovering discipline and driving profit in the new world of “very little room for error.”
In the wake of a lagging economy, the answer how to increase sales seemed clear enough: expand the product range. However, doing so would require more capital investment, not an easy ask in a slumping marketplace. Financial benchmarking had been a pillar for planning for years and it would play a major role in implenting this re-tooling plan. The leadership team sought Profit Soup’s trusted outside perspective to fine-tune and effectively execute the plan, to add credibility by endorsing the plan and give owners a reason to believe they could be successful.
CHALLENGE: To demonstrate the profit potential of the new business model, foster franchisee “buy-in” to the plan, and illustrate how greater financial discipline was no longer optional.
SOLUTION: Pairing custom workshops and actual financial results from prior years’ benchmark studies, we applied a really logical and financially sound model to help people understand the dollars and cents of “buying-in” – the big picture. Once they understood how the numbers penciled out, we wanted them to make a decision on their own. The financial data helped us develop a four stage “buy-in” progression plan. We validated and mapped which franchisees were immediately ready to move to the new model and what steps needed to be taken before others would be ready to get on board. One on one coaching was made available to those who needed more help to understand the financial piece, and how to keep financially disciplined in this new world of “very little room for error”.
IMPACT: Barb has worked with our company, and our franchisees, for a number of years. Her guidance and insights are born from a strategic viewpoint that always balances the restraints inherent to capital funding with the resources required to properly execute. Her methodical and intelligent approach rarely provides the easy answer but it does provide a road map to the planning and effort required for growth, innovation and profits. Barbara’s work is tireless, her desire for details provides safeguards and her work product is highly valued. Barb (and Profit Soup) is one the few firms that can appropriately bridge strategy, capital and execution between franchisees and franchisor.
Eric Bernstein, President, ProSource Wholesale Floorcoverings