A TACADA INICIAL PARA SAIR DA CRISE | TALK C/ ROBINSON SHIBA

Summary

This video script details the journey of a franchise owner who navigated rapid expansion during challenging economic times, including Brazil's 1990s crisis. Starting with a small dental business, the entrepreneur scaled to 100 stores in just a few years. Facing declining sales, the owner embraced transparency with franchisees, focusing on collaboration and tools to enhance performance. Key strategies included standardizing operations and sharing best practices. The entrepreneur's willingness to adapt and innovate during tough periods led to creative solutions, such as introducing smaller product offerings to meet changing customer demands, ultimately boosting sales and resilience.

Takeaways

• 😀 The initial phase of the business was challenging, starting during Brazil's 1992 impeachment and an economic crisis.
• 😀 The speaker, a dentist, rapidly grew a franchise network from zero to nearly 100 stores in just a few years, despite lacking business management knowledge.
• 😀 The rapid expansion of the franchise network in the early years was fueled by the success of the Real Plan (Plano Real), which stabilized Brazil's economy.
• 😀 In 1997, a crisis triggered by the Asian financial crash caused the local currency to fluctuate, leading to decreasing sales and increased pressure from franchisees.
• 😀 During a critical moment in the business, franchisees demanded better tools and support, prompting the speaker to admit the lack of resources and transparency in the company.
• 😀 The solution to the franchise's struggles involved creating a franchisee advisory council, which allowed franchisees to collaborate and offer input on the business's direction.
• 😀 The implementation of consulting services helped improve the company's organizational structure and operations, offering tools like an updated organizational chart.
• 😀 The key turning point for the franchise came when they standardized product sourcing and pricing, ensuring that franchisees would buy from the same suppliers and maintain consistent costs.
• 😀 Information sharing became critical to improving franchise performance, as providing data about profit margins, losses, and cost discrepancies helped franchisees optimize their operations.
• 😀 The company's role evolved into a model for replicating the best practices, including marketing strategies, pricing policies, and employee retention techniques, ensuring consistent success across all franchise locations.

Q & A

What was the main challenge the speaker faced when growing the franchise business?

The main challenge was rapid growth without adequate infrastructure or management systems. The speaker was a dentist with little knowledge of business administration, which made managing a growing franchise network difficult.

How did the economic situation in the early '90s affect the speaker's business?

The early '90s were marked by an economic crisis and political instability (such as the impeachment in 1992). The speaker started the business in a difficult period with limited resources but managed to find opportunities by leveraging the economic situation to acquire equipment at low costs.

What was the turning point that caused sales to decline despite rapid growth?

Sales began to decline in 1997 after the business had grown to 100 stores. The franchise network started to face challenges due to the impact of the Asian financial crisis, rising inflation, and a lack of standardized systems or tools for the franchisees.

How did the speaker respond to the franchisees' demands for better tools?

The speaker responded with transparency, admitting that they did not have solutions but proposed working together with franchisees to build tools and solutions. They hired a consultant and formed a franchisee council to develop better operational standards and improve communication.

What role did the franchisee council play in overcoming the challenges?

The franchisee council played a critical role in the decision-making process. By electing representatives, they helped ensure that the solutions developed were practical and relevant. The council allowed franchisees to actively participate in shaping the future of the business.

What was one of the key solutions implemented to address inefficiencies in the franchise network?

One key solution was standardizing suppliers and information. This allowed all franchisees to access the same products at the same prices, reducing inefficiencies and helping the network identify areas where some franchisees were overspending.

How did the speaker use data to help franchisees improve their performance?

The speaker used data to highlight inefficiencies, such as differences in costs between franchisees selling the same amount of product. By providing insights into how franchisees were performing relative to the network, they could help identify areas for improvement and guide franchisees on how to reduce costs.

Can you provide an example of how one franchisee innovated during this time of crisis?

One franchisee innovated by creating a smaller portion size product, a mini-box, which appealed to customers looking for cheaper meal options. This new product significantly increased the franchisee's sales, demonstrating how adapting to customer needs can drive business growth.

What lesson did the speaker learn about leadership during times of crisis?

The speaker learned that leadership in times of crisis requires transparency, openness to collaboration, and the ability to guide others through challenges. By involving franchisees in the problem-solving process and focusing on data-driven solutions, the speaker was able to navigate the crisis successfully.

What does the speaker mean by being a 'multiplicator of best practices' in a franchise system?

Being a 'multiplicator of best practices' means sharing the most effective strategies and solutions across the franchise network. The speaker's role was to identify what was working well in some locations and help other franchisees implement those successful practices to improve overall performance.