Many businesses require multiple locations to get to scale. But only a small handful ever wind up thriving. Why is this?
Part of it comes down to the fact that some companies are better at keeping the cost of multi-location businesses lower than others. But how are they doing it?
Regular Reviews
One obvious strategy is to conduct regular reviews. Sometimes locations can exhibit process drift, which is where they depart from standard procedure over time. Going in and doing an audit can reduce this issue significantly, seeking site-specific efficiency gains.
Include More Energy Saving Measures
Another strategy is to focus on energy-saving measures, especially if you discover that excessive power bills are the primary problem. If you can add LED lighting and smart thermostats, that can make a significant difference to expenses and potentially bring down differentials across locations.
Centralizing energy monitoring is also a possibility using today’s tools. Cloud software can bring everything together and tell you if you are operating inefficiently in some areas.
Outsource Janitorial Work
Another approach is to outsource your janitorial work to low-cost providers. These often bring down your expenses significantly, even if it means going to another company.
You can check you’re getting the best price using janitorial bidding software. These solutions create marketplaces where janitors and commercial cleaning companies can bid on your jobs, allowing you to pick the one offering the best value.
Train Staff Better Across Locations
You could also try training staff better across locations, allowing each team member to take on multiple roles. Adding flexible scheduling to match staffing with demand could be an excellent way to avoid over- or under-spending.
Usually, existing staff can do a lot of work by themselves. However, they will eventually reach a breaking point they can’t sustain.
The trick here is to use part-time or remote workers for various tasks to cut labor costs. If you can bring people in part-time to supplement your core staff, that may also be a great way to cut excessive costs at specific locations.
Negotiate Bulk Deals
You can also try negotiating bulk deals in some cases. Instead of getting each location to order the supplies and goods it needs individually, you can get everyone to order together and then distribute from a central location you manage.
Bulk ordering reduces the cost per unit, but it only really works for non-perishables. You can try it for foods and medications, but you may find that you end up with much more waste.
Standardise Your Operations
Another approach is to standardise your operations across locations. If you can get everyone following the same process, you can eliminate this factor as a reason for higher costs.
For example, you can standardise reporting and compliance. You can also introduce templates that reduce the need to micro-manage every location.
Use A Franchise Model
Failing everything else, you could also try a franchise model. Passing management over to new owners and receiving royalties can often solve a lot of the problems described above for more location-dependent business models.
Many businesses require multiple locations to get to scale. But only a small handful ever wind up thriving. Why is this?
Part of it comes down to the fact that some companies are better at keeping the cost of multi-location businesses lower than others. But how are they doing it?
Regular Reviews
One obvious strategy is to conduct regular reviews. Sometimes locations can exhibit process drift, which is where they depart from standard procedure over time. Going in and doing an audit can reduce this issue significantly, seeking site-specific efficiency gains.
Include More Energy Saving Measures
Another strategy is to focus on energy-saving measures, especially if you discover that excessive power bills are the primary problem. If you can add LED lighting and smart thermostats, that can make a significant difference to expenses and potentially bring down differentials across locations.
Centralizing energy monitoring is also a possibility using today’s tools. Cloud software can bring everything together and tell you if you are operating inefficiently in some areas.
Outsource Janitorial Work
Another approach is to outsource your janitorial work to low-cost providers. These often bring down your expenses significantly, even if it means going to another company.
You can check you’re getting the best price using janitorial bidding software. These solutions create marketplaces where janitors and commercial cleaning companies can bid on your jobs, allowing you to pick the one offering the best value.
Train Staff Better Across Locations
You could also try training staff better across locations, allowing each team member to take on multiple roles. Adding flexible scheduling to match staffing with demand could be an excellent way to avoid over- or under-spending.
Usually, existing staff can do a lot of work by themselves. However, they will eventually reach a breaking point they can’t sustain.
The trick here is to use part-time or remote workers for various tasks to cut labor costs. If you can bring people in part-time to supplement your core staff, that may also be a great way to cut excessive costs at specific locations.
Negotiate Bulk Deals
You can also try negotiating bulk deals in some cases. Instead of getting each location to order the supplies and goods it needs individually, you can get everyone to order together and then distribute from a central location you manage.
Bulk ordering reduces the cost per unit, but it only really works for non-perishables. You can try it for foods and medications, but you may find that you end up with much more waste.
Standardise Your Operations
Another approach is to standardise your operations across locations. If you can get everyone following the same process, you can eliminate this factor as a reason for higher costs.
For example, you can standardise reporting and compliance. You can also introduce templates that reduce the need to micro-manage every location.
Use A Franchise Model
Failing everything else, you could also try a franchise model. Passing management over to new owners and receiving royalties can often solve a lot of the problems described above for more location-dependent business models.
