Summary of Key Success Factors - Plunkett Franchise Models
The Key Success Factors can be divided into two categories – external market factors and internal organisational factors.
Key Success Factors - Market
Each franchise model is tailored to the marketplace in which is operates. The market sector needs to be:
- Emerging – the sector is new or developing and has growth potential
- Fragmented – industry structure presents no significant barriers to entry
- Co-operative Friendly – the co-op is a suitable business form for the sector
- Replicable – the market is nationwide, and the co-op could be set up almost anywhere in the UK
Key Success Factors – Organisation
A successful co-operative organisation will be able to demonstrate the “Five Cs”:
- Clear purpose – the organisation know what it wants to achieve and how it plans to get there
- Commitment – all members are committed to using the co-op, and demonstrate their commitment by signing a Member Agreement
- Communication – successful co-operatives have clear, effective and regular routes of communication between their management, members, customers and stakeholders
- Competent management – appropriate and skilled leaders and managers are found or developed from within the co-op membership
- Core Funding – sufficient funding is in place at the outset, and funding comes primarily from members, not grants