Franchise Business Plan
Posted by
Bob Gappa on Fri, Feb 03, 2012 @ 09:10 AM
The future has already happened. We just have to catch up to it.
Theory does not precede and cause new practices. Theory follows the observation of new practices and extrapolates its importance in the future state of things. Scientists and social scientists and social psychologists watch what is happening and build theories from what they observe. This was true of da Vinci, Galileo, Newton, Einstein, Pasteur, Kepler, Copernicus, Hubble, Ferme, Piaget, Oppenheimer, Salk, Skinner, Levi-Strauss, Mayr, Drucker, Riechheld, etc.
Newton’s Newton's law of universal gravitation provides an accurate approximation for most physical situations. Gravity was first a reality and then a theory developed by Newton and then modern physics describes gravitation using the general theory of relativity by Einstein, in which it is a consequence of the curvature of spacetime governing the motion of inertial objects.
Polish physicist and chemist, Marie Curie was a pioneer in the field of radioactivity, the only person honored with Nobel Prizes in two different sciences. Her achievements include the theory of radioactivity (a term coined by her), techniques for isolating radioactive isotopes, and the discovery of two new elements, radium and polonium. It was also under her personal direction that the world’s first studies were conducted into the treatment of neoplasms (“cancers”), using radioactive isotopes.
I could write about each of those listed. But I choose to list Peter Drucker and Frederick Reichheld. Drucker, called The Father of Modern Management, observed and developed business theories, 55 years ago, that the purpose of business was to create systems that drove revenue and controlled costs. He further observed and developed theories that the driver of revenue was the creation and retention of very satisfied, loyal, frequent user customers. Reichheld further observed that these customers satisfaction and loyalty could be measured and he observed and built theories that small increases in satisfaction, loyalty and frequency would yield multiples of profit and growth.
Today these observations of Drucker and Reichheld are accepted practices in the Fortune 1,000 companies and are being slowly accepted by the franchise community. Brands using franchising as their primary growth strategy would do well to study these customer-centric theories and practices and implement them very quickly in order to achieve greater profit, growth, ROI, EVBITDA, and shareholder value. The theory of customer-centric is as obvious as gravity, the atom, and cancer research.
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