Duration: 44 mins plus activities
This module covers the following topics:
In this module you will learn how to grow an existing business by improving its financial performance through understanding the profit contribution of five key variables.
You will also learn how to recognise and capitalise on opportunities for growth as a franchisee and a business owner within your franchise system.
Managing Growth and Identifying Opportunities
Review the Managing Growth and Identifying Opportunities video below. A transcript of the video is available here (PDF 125KB).
Module Four Learning Activities
- For a business you currently own, or for one you are considering, determine your average transaction value (ATV) using the ATV formula (PDF 30KB).
- Open the ATV spreadsheet (Excel doc 33KB). This is an example for a hypothetical coffee shop. Here you can experiment with changes in ATV, price, customer frequency and the number of customers to see the effect on profit.
- Next work out the effect of a 5% increase in ATV using the ATV spreadsheet (Excel doc 33KB).
- Review Q&A interview with Ella Bache Multi-Unit Franchisee, Graham Thatcher, who is a multi-unit franchisee. He talks about managing growth from a single unit franchisee to a multi-unit franchisee. A transcript of the interview is available here (PDF 52KB) .
- Read Chapter 16 ‘Managing Growth from Entrepreneurship to Manager’, p410-412 (PDF 1.2MB) from Entrepreneurship and Small Business, Third Asia-Pacific Edition by Schaper et al.
Self Assessment Quiz
Test your knowledge of this module with this assessment quiz. To successfully complete this module and obtain a Certificate of Completion you need to get a score of 85% or better.
- If you don’t wish to test your knowledge, you can proceed directly to Module Five: Franchise Conflict Causes and Resolutions.
Managing Growth and Identifying Opportunities Resources
- Average Transaction Value Formula
- Average Transaction Value (ATV) Spreadsheet
- Chapter 16, ‘Managing Growth from Entrepreneurship to Manager’, p410-412 from Schaper, M, Volery, T, Weber, P & Lewis, K 2011, Entrepreneurship and Small Business, 3rd Asia-Pacific edn, John Wiley & Sons Australia Ltd, Milton.