CONSIDERATIONS FOR ADDING NEW TERRITORY:
By Alex Braig
A sk any Texan this question and chances are you will get the answer “bigger is better!” It’s in our blood to want the biggest and best. I like to imagine that there is a little Texan in all our franchisees! While it is human nature to want to grow and expand, like most things in business, timing is everything. While adding new territory can bring new revenue streams and profits, it is not done without risk. Let’s consider some of the advantages and pitfalls of growing the business by expanding territory. 1. First, you must look at whether you are eligible to add new territory. Some of the prerequisites include: 2. Submitting a business plan
Are you adequately staffed to take on new territory? Making sure that you have enough equipment as well as manpower is a major factor in determining whether you are ready to add new territory. You will want to have a plan in place for hiring new, quality employees. Growing too fast or without a plan can cause quick hires that may not be up to your desired standard and in turn hurt your business. Will you be able to keep up the same standard of work that brought you success in the first place? When adding new territory, it is vital to keep your customers happy. When sales are rising, it is easy to be lackadaisical with your products and services. Customer retention is key! Do not sacrifice current
“While it is human nature to want to grow and expand, like most things in business, timing is everything.”
3. Performing the four core services (Cleaning, Water Mitigation, Fire, and Odor) 4. Full-time Business Development Associate (BDA) 5. Must be contractually compliant 6. Actively participating on Key Account Program (KAP) and be compliant with KAP standards 7. Must meet the revenue-sales/capita requirements The benefits of owning additional territory are simple, yet grand. Not only are you locking up more area for KAP work, but you have now expanded your marketing ability. Being able to actively market and sell jobs in a new expanded area is arguably the greatest advantage that adding new territory brings. Most franchisees don’t have a problem finding reasons to expand their territory. However, it is important to see both sides of the fence and ask yourself some questions on whether you and the business are ready.
customers for new ones. What is your return on investment (ROI) for the additional territory? Does it make more sense to tie up your money in additional land as opposed to other opportunities? You have often heard the saying “you drive by so many opportunities just to get to one”. Make sure that you are not just growing out, but also growing deep in your territory. That money could be used to further train and educate your employees. Being able to offer a one-stop shop with more services is an appealing package for your customers as well as extra revenue streams. Use these added services to help boost customer retention, which will in turn help spread your word of mouth marketing. Adding new territory is a natural progression when growing your business and is something that everyone should strive for. While there may never be a perfect time to grow, it is always important to make sure that you can grow and have a well thought out plan on how you are going to accommodate your new business!
STORMSURGE TM | E1:2017 23
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