As we head into the fourth quarter of 2024, many business and franchise owners are thinking about how to finish the year on a high note. The fourth quarter is often seen as a critical time to reflect on achievements, prepare for growth, and set up the coming year for success. Whether you’re a seasoned business owner or someone navigating the nuances of franchise ownership, these essential action items will help you make the most of the remaining months.
Review Year-to-Date Performance Metrics
Understanding where your business stands is essential for making informed decisions. Evaluate key performance indicators (KPIs) such as revenue, profit margins, customer acquisition costs, and employee productivity.
- For franchise owners: Take a close look at how your franchise units perform relative to your franchisor’s benchmarks. If you’re a semi-absentee owner, this is the time to ensure your manager-run system is functioning efficiently.
- Key Action: Set a meeting with your team or managers to discuss performance metrics, gaps, and areas of improvement. If you’re not hitting your targets, focus on understanding the “why” and strategize for course correction.
Optimize for Seasonal Trends
Depending on your business or franchise type, the fourth quarter may present a spike in customer activity, especially for retail, service, or hospitality franchises. This is a perfect opportunity to capitalize on seasonal demand.
- For service-based franchises: Think ahead about services customers may need as the year ends. Can you offer packages, bundles, or discounts that align with holiday or seasonal needs? It’s a great time to lock in customer renewals if you’re offering recurring services.
- Key Action: Review your marketing and sales strategy for the quarter and ensure it aligns with seasonal opportunities. Double down on promotions that have historically worked and consider launching campaigns targeting holiday-specific customer needs.
Focus on Customer Retention and Loyalty
While it’s tempting to push for new customer acquisition in the final stretch of the year, don’t overlook your existing customers. They are more likely to bring in immediate revenue, and keeping them satisfied can boost lifetime value.
- For franchise owners: This is especially critical, as brand consistency across all locations helps build trust and loyalty. Make sure your franchise delivers a top-notch customer experience by providing consistent training for staff and maintaining high service quality.
- Key Action: Implement a customer appreciation campaign. Consider offering loyalty rewards, special discounts for repeat customers, or a holiday “thank you” initiative to remind customers of the value you offer.
Evaluate and Refine Operational Processes
Efficiency is vital to running a successful business, especially as you close out the year. This is the time to streamline operations, assess employee performance, and make sure everything is running smoothly.
- For franchise owners: If you manage multiple locations, assess if certain units are more efficient than others. Explore what’s working well in high-performing units and how those practices can be replicated across others.
- Key Action: Conduct an operational audit. Look for bottlenecks or inefficiencies in workflows, supply chain management, or customer service. Address these now to hit the ground running in 2025.
Engage in Year-End Financial Planning
Strong financial management in the final quarter can determine whether your year ends with a surplus or shortfall. Take a detailed look at your cash flow, profits, and expenses.
- For franchise owners: Ensure your franchise fees, royalties, and any other financial obligations are in order. If you have the capital, consider reinvesting in your franchise—whether it’s a new location, updated equipment, or staff training.
- Key Action: Meet with your accountant or financial advisor to assess your tax position and explore year-end tax-saving opportunities. This might include purchasing new equipment, making charitable donations, or accelerating expenses before year-end.
Set Clear Q1 2025 Goals
While the focus is on closing out 2024, it’s essential to have a forward-looking plan. Begin setting your goals and growth strategies for the first quarter of 2025.
- For franchise owners: Coordinate with your franchisor to understand the larger growth plans for the system and how you can align your local strategy with the overarching goals. It’s also a great time to evaluate new franchise opportunities or additional territories.
- Key Action: Host a strategy session with your team to set Q1 goals. Identify specific KPIs that will drive success, whether it’s increasing foot traffic, improving customer retention, or expanding your marketing reach.
Reconnect with Your Network
Q4 is also a great time to strengthen relationships with your network, whether that’s with referral partners, fellow franchise owners, or customers.
- For franchise owners: Your franchisor likely has a network of franchisees that you can tap into for support and advice. Whether it’s about overcoming operational challenges or exploring new marketing tactics, leverage these relationships for fresh ideas.
- Key Action: Reach out to key contacts and set up meetings before year-end to discuss collaborations or opportunities to support each other’s businesses in 2025.
Leverage Technology and Innovation
In 2024, there have been numerous technological advancements that businesses and franchises can adopt to increase efficiency and customer engagement. From AI-driven marketing tools to improved POS systems, embracing the right technology can give you a competitive edge.
- For franchise owners: Check with your franchisor for any tech upgrades that can be implemented across your locations. Whether it’s an advanced CRM system or digital tools for better customer engagement, now is the time to implement them before year-end.
- Key Action: Invest in a technology audit to identify tools that can enhance your business. Make the necessary upgrades and train your staff to ensure a smooth transition.
The fourth quarter is more than just the end of the year; it’s an opportunity to set your business or franchise up for long-term success. By focusing on performance reviews, customer retention, operational efficiency, financial planning, and future goals, you can ensure that 2024 ends on a high note, paving the way for a prosperous 2025.
Whether you’re a business owner or franchisee, implementing these action items will help you finish strong and move into the new year with momentum. Take the time now to evaluate, optimize, and strategize—and you’ll be well-positioned for success both in the final quarter and beyond.
David Weaver is the Founder of Franchise Your Freedom and a senior consultant with FranChoice, the premier national network of franchise consultants. David helps people all over the country find the right franchise fit by sharing his personal experience and philosophy on how to select the right brand. He shares proven strategies and over a decade of experience growing franchise companies for himself with those that are doing it for the first time.
