Although it is clear that a franchise can be a safe investment, this does not mean that it is without risk.
There are many challenges to take on, such as choosing the right location, financial aspects, as well needing the skills required to carry out this type of project.
In this article we will focus on the entrepreneur’s challenge of offering their customers something new. As you can imagine, this is no simple task.
Relationship between innovation and franchising
When we talk about innovation we refer to a change, a transformation, differentiation, development or progress.
We live in a world where everything is constantly changing and, of course, this is no different in the world of franchises.
Even if the brand itself has already established itself in the market and has won over the consumer, it’is important to be aware of new consumer needs in order to launch new ideas to meet them.
The franchise itself is based on innovation: a project born from a successful innovative idea, to the point of offering security for all those who decide to follow it.
Today’s technologies and digitalization are allied with the entrepreneur to meet the needs of consumers in very different ways. For example, we could be talking about Jeff’s lines of business, such as a laundry franchise, café, and gym.
These are business models that have a place in the modern world in which we live. They are in high demand, so many entrepreneurs are interested in pursuing that line of business. New technologies allow these businesses to make themselves known.
Although innovation is present from the birth of each franchise… What happens once it’s been created and is up and running? Although the brand is consolidated, it’s essential to continue innovating. In order to do so, it’ll be necessary to pay special attention to current trends and continue to evolve. We identify the needs of the public and then find the way to meet those needs.
For example, in the gym sector we find interesting innovations such as differentiated training areas, a team of professionals who offer training advice, class information via the web, and some other things.
Read on to learn more about the relationship between innovation and franchising.
What are the benefits of a franchise following the culture of innovation?
1. Competitive advantage
By innovating in the franchise we facilitate the achievement of strategic objectives that have been set within the brand. What is really interesting is to take into account the culture of innovation in the strategic plan of the organization, in order to create a plan with appropriate considerations.
It also helps to boost competitiveness; due to the work team having a greater capacity to generate ideas in an efficient and versatile way. It’s not only a part of the Research and Development (R&D) work but also a creative task that extends the entity’s competitive advantage.
2. Increased product generation capacity
Thanks to the culture of innovation, the brand will be able to generate a greater number of products/services, in addition to increasing their availability.
This is because consumers are becoming more and more demanding, forcing the franchise to evaluate the products and services it has in its catalog, maybe even reformulating them to meet the consumers’ needs.
In addition, this culture also pursues the introduction of new technologies that allow the production of products adapted to what is sought.
3. Encourages sustainability
In addition, there is a current trend among companies to follow more sustainable processes. Innovation can be used to develop strategies that promote sustainable growth on the part of the entity.
This will only be possible if safer and more environmentally friendly production methods are used.
Basically, thanks to the culture of innovation we can improve the competitiveness of the franchise, create products/services knowing that they will be in demand, and collaborate in the creation of a much more sustainable world.
This is the relationship between innovation and franchising.