Franchising for profitability

In a recessionary economy such as South Africa is currently experiencing, profitability without discipline is unlikely. For this reason, you as the business owner will need to find smart ways to manage finances to control your cash. Ask a seasoned financial professional what you can do to control financial headaches in your business, and most will advise you to limit the fixed costs and, as much as possible, outsource to avoid permanent hires in the business.

1. Payroll

Outsourced payroll software such as VIP and Simple Pay offer a virtual payroll solution that meets compliance standards of the South African Revenue Service (“SARS”) in every respect.  Pricing is generally on a cost per payslip basis, meaning that your cost is a function of your workforce rather than a function of the permanent hire payroll individual in your business.  These solutions are offered by all reputable accounting firms on an outsourced basis, giving you the added advantage of the knowledge of a team of experts at a variable cost for your business. 

2. Financial accounting

Similar to outsourcing your payroll function, thanks to Cloud Accounting solutions with in-built artificial intelligence and machine learning capabilities, most business owners will no longer need a permanently employed financial accountant in their business.  If you suffer from fear of finances, outsourcing your accounting function to a firm of accountants proficient in Cloud solutions will give you access to your business finances, with the comfort of knowing that you have the skill of an accountant in your Cloud solution. 

3. Premises

If you are operating a predominantly manufacturing facility, plush offices are a luxury.  Co-working spaces available in all major centres in South Africa offer professional temporary accommodations on a pay-per-hour basis for client meetings.  This flexibility offers you as the business owner the scope to pay only for the accommodations as and when needed, rather than as a fixed cost of the business. 

4. IT

In-house IT solutions are increasingly scarce for businesses and the modern trend is to procure a syndicated solution whereby you have access to a team of experts for an agreed volume of support hours per month.  These support hours can be delivered remotely or on-site, as your business requires. 

5. Marketing

Modern marketing is increasingly digital and as a sector of marketing overall, digital marketing is driving growth across the industry.  Modern service providers offering quality syndicated solutions to support your business in every aspect of your marketing abound, relieving the pressure on business owners to retain fixed cost in-house marketing.  This level of flexibility means that you retain services on an as-needed basis. 

At Signarama Southern Africa, we educate our franchisees on cost saving measures that promote business decisions geared at profitable business. If you are interested in talking to us about a franchise with excellent support, we look forward to hearing from you. Call us on 012 285 0412 or email us from our website.