Strategies For Sustaining Your Business Until Profitability

Expedia Cruises multi-unit franchisee, Fred Mercer, recently sat down for an interview to discuss how to sustain a business until reaching profitability. Everyone knows that the first few years are the toughest. There are a lot of ups, but the daunting downs can sometimes seem to overshadow the good.

Fred, who used to work at Expedia Cruises’ corporate office, now has four total franchise locations across the U.S. and Canada: Langley and Kamloops, British Columbia; Lethbridge, Alberta; and San Diego, California. Read his interview below to learn about his top three strategies for sustaining your business until it reaches profitability!

Becoming an entrepreneur

Deciding to become an entrepreneur can be very exciting, but it comes with a lot of work. One factor that someone may not realize is the time it will take to turn a profit. While there are businesses that can reach profitability fairly quickly—within a year or so—many others can take a longer-than-expected time to earn a steady cash flow. And yet, some entrepreneurs may experience additional challenges that slow down the profitability timeline.

From my experience as both a corporate employee and franchisee of Expedia Cruises, a few strategies I’ve learned along the way can help fellow or aspiring entrepreneurs succeed in the crucial first few years of opening a business.

Follow the franchise system

Franchise systems have a proven business model and are specifically created to help you achieve success. The system will either provide you with or has access to resources for reach area of the business: from site selection and lease negotiation to recruitment and hiring to marketing and more.

While there may be tactics or strategies that have worked for you in previous jobs, it’s important that you trust in the playbook the franchisor has provided. Remember, you joined the system for a reason, so you already have belief and confidence in the brand. Trust the process. It has worked for many others before you.

I’ve been able to witness firsthand the consequences of when a franchisee does not follow the system. By following the system and executing what the corporate team has provided, I was able to turn around a few Expedia Cruises locations that were struggling. When you execute the playbook, you will obtain profitability.

If you aren’t seeing success, it’s not because the system isn’t working; it’s because you aren’t executing it correctly.

Comprehensive financial planning

Prior to joining a franchise system, it’s critical that you set up a comprehensive financial plan that goes beyond startup costs. A good place to start is by taking a look at the franchise fee, build out fees, ongoing operational expenses, etc. Plan for all of this to be more than expected as this will help ensure you can sustain personal financial stability during these initial phases and until you turn a profit.

Starting a business, establishing the brand in a new market, and building your customer base takes time. Don’t expect to see profits right away. If you have financial concerns when taking a look at and planning for the first few years, consider exploring another source of income or seek out a franchise funding program as you wait for your franchise to see cash flow.

Maintaining financial discipline and avoiding premature cost-cutting measures are critical to weathering the early years and setting the foundation for long-term success.

The right team

Investing in your team is not just about picking the people with the most qualifications; it’s about choosing employees who will help bring in new customers. For example, I don’t stay laser focused on a candidate’s sales experience when conducting an interview. I ask them about their passion for travel because, for Expedia Cruises, that genuine interest will translate into providing better results for customers while attracting new ones.

Your team needs to be just as eager and hungry to grow and succeed as you are. It’s important to surround yourself with a team who is uncomfortable with complacency and will go the extra mile to make sure they find ways to improve the experience for every customer whowalks through your doors.

If you open a business and don’t see immediate profits—don’t give up. It won’t happen overnight. Businesses that stay true to their core values and stick to the basics of providing excellent customer service are the ones that survive and thrive.

Exploring the Expedia Cruises Franchise Opportunity

Are you seeking a business opportunity that perfectly balances equity, lifestyle, and fun? The Expedia Cruises franchise opportunity empowers franchise owners to do it all! The power of Expedia’s well-known brand, commitment to exceptional customer service, omnichannel approach, and proven franchise business model has helped it grow into a leading travel seller in North America.

To learn more about the Expedia Cruises franchise opportunity, email jeff@expediafranchise.com, or call (778) 928-0053.