Diversity and diversification

There are two ways in which every franchise business can strengthen its business model and become more resilient to the changes in its operating environment: diversity and diversification.

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Diversity

When a business employs people of different genders, ages, ethnicities, cultural backgrounds and education levels, it creates a diverse and inclusive workforce that promotes its social values while improving productivity.

A diverse workforce is more creative than one in which all (or the majority) of workers are from the same societal sub-set. When people with different life experiences and backgrounds come together, they are better able to approach problems from different perspectives, working together to determine the most satisfactory solution.

Inclusive businesses are more attractive to job-seekers and tend to have better retention rates. In addition, their employees are more eager to become ambassadors for the business. When the workforce is committed to its employer's aims, employees are happy to promote the business to others, increasing its reputation and reach.

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Diversification

There are two ways in which a franchise can diversify its portfolio. The first is through adding new franchisees in under-represented areas, thereby expanding its reach and attracting a new and broader target demographic of customers.

The second is through implementing supplementary income streams to reduce reliance on one major element of the business, protecting against the risk of that income stream failing or becoming vulnerable to societal, political or financial instability.

Franchises that want to diversify their service offering should consider adding complementary products or services that will enhance their core offering. For example, food businesses could offer eat-in and takeout options, cleaning businesses could also sell their products, and fitness businesses could branch out into promotional merchandise, fitness equipment or nutritional supplements.

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Diversity matters

By improving the diversity of your franchise, you will attract talented and enthusiastic people to your workforce whose ideas and experiences will enrich your plans and support you in achieving your business objectives. A reduced turnover rate, increased profit margins and improved reputational presence are all benefits of embracing diversity in the workforce.

By diversifying your product range or expanding your franchise into new and untapped areas, you will be able to secure its future, even in light of global financial insecurity. You will be able to access a broader range of potential customers, raise your brand's visibility, and build a strong reputation as a supplier of the goods and services that your business provides.

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