Successful multi-unit owners believe they’ll crush it when they double down to expand. They have a vision, a rock-solid financial plan, and a six-pack of profitable locations. So why not scale up? Like Tony Stark in “Iron Man” during his early “I’m invincible” days, it’s not as simple as it seems.
Let’s bust four myths that leave even the best enterprise builders flying too close to the sun.
Myth No. 1
Financing is a big hurdle, right? Wrong. Money follows when your locations are profitable and you have a solid business plan. The real challenges are expanding with an overstretched support system and underestimating needed infrastructure. Doubling operations means scaling your systems and talent so that you can let go of daily decision-making.
Myth No. 2
Top-notch operators like War Machine—as played by Don Cheadle in Marvel movies—are reliable, disciplined, and excellent at executing. But operational prowess doesn’t always translate to leadership. Scalability demands more than running a tight ship; it requires strategic thinking and effective delegation.
Micromanaging multiple units is like Tony Stark trying to control his assistant, Jarvis; his love interest, Pepper Potts; and all of his Iron Man suits simultaneously—chaos! Great leaders inspire their teams, empower managers, and focus on big-picture growth. They reassess and fine-tune their processes to support scaling. Even Stark delegates. If control is your sweet spot, try a new look. Leadership can be learned.
Myth No. 3
Some believe more units will require more work. That’s not necessarily so if you leverage technology. Let systems do the heavy lifting. Embrace cloud-based CRMs and KPI monitoring. You can’t be hands-on with every location. Empower others and adopt a continuous improvement mindset.
Look to your franchisor for systems that enable you to work smarter, not harder. Put the right people in place, give them the right tools, and focus on leadership. This approach helps achieve that elusive work-life balance while keeping the business thriving.
Myth No. 4
Operators might believe they can rely on their own infrastructure instead of their franchise support team. Wrong again. You’re the investor managing a portfolio. Robust support systems are essential to earning the solid returns you require. Your managers do not have your commitment to the business and are likely to leave. A healthy culture, franchisor training, and operational resources can fill gaps when that happens.
Scalable franchise systems need robust systems to monitor performance as well as onboard and train talent. You are responsible for executing the game plan to keep your managers engaged and thriving. Investing in people and processes limits costly turnover.
Reality Check
Successful enterprise growth boils down to three critical elements: competencies, capacity, and capital (the three C’s). Think of them as your Iron Man suit. Without all three—and a mindset of continuous improvement—you’re flying blind.
Here’s a closer look:
- Skills are never static; they must evolve to lead multi-unit teams and scale the business effectively. This goes beyond technical skills at an operational level. Leadership and strategic thinking must be developed throughout the organization, which means you, your district managers, and your leadership team.
- Personnel, equipment, and operating systems must have the bandwidth to scale. Doubling units without doubling capacity is a recipe for disaster.
- Cash is the fuel that propels growth. Ensure you have enough to seed new units without draining resources from existing ones.
Franchisees who nail the three C’s thrive. They develop leadership and build systems that maintain financial stability to keep everything humming. Franchisors must define how these elements scale within their models and provide the necessary training and support to help franchisees succeed.
Know what you need
Here’s a quick scalability readiness checklist:
- Expansion criteria. Have you established criteria for the competencies, capacity, and capital required for your next level of growth?
- Vision alignment. Is there a shared vision throughout your organization that supports your growth and success objectives?
- Are your teams empowered to identify and overcome operational roadblocks?
- Recruitment strategies. Do you have strong recruitment and onboarding programs for key positions?
- Financial performance benchmarks. Do you use financial and KPI benchmarks to guide expectations?
- Leadership training. How do you enhance soft skills, like communication, coaching, goal setting, and delegation?
- Profitability projections. Can you project profitability timelines based on reliable data?
- Financial training.Do you offer financial training to help managers improve profits and cash flow?
- Data-driven decisions.Do you share data insights, including unit profitability, to guide continuous improvement across all locations?
If you check all these boxes, you’ve got the Iron Man armor of scalability—ready to expand, build teams, and dominate the world of enterprise development. Now, suit up and get to work!
Larry Layton, CFE, MBA is the newest member of the Profit Soup team and is also known as Iron Man, aka Tony Stark. His insights as a franchise operations executive, business consultant, and business owner bring new depth to the team. Contact him at 714-309-3773 or larry.layton@profitsoup.com.
More Resources
Learn more about our Hybrid Training Programs here.