What’s Your Exit Strategy? | Global Shared Services

January 7, 2019

When you’re running a franchise restaurant, it can be easy to get caught up in the day to day processes and forget to look ahead to the future. After all, when you’re bombarded with questions from employees, keeping up with constant paperwork, and working out the everyday kinks in any small business, it can often feel like there isn’t time for the future. But as any virtual CFO will tell you, planning out the future of your business is hugely important.

We all want our businesses to grow. But what happens when you’ve achieved the growth you’ve wanted and are getting ready to move to bigger opportunities? Or someone who’s interested in buying your franchise restaurant comes knocking on your door? Have you included an exit strategy in the future of your business?

A virtual CFO can help you figure out when it’s best to sell. But for now, let’s take a look at the benefits of operating as though you were going to sell- even if selling is far off in the future.

Be Ready for Any Opportunity

One of the many good things in life is its unpredictability. You never know what the future holds or who’s going to knock on your door next. But that also means you need to be ready for any opportunity. What would you do if someone knocked on the door of your restaurant and offered to buy you out for a tidy sum?

Part of being a franchise restaurant owner is being ready for any opportunity that comes your way. After all, everyone has a number that they can’t say no to. A virtual CFO can help you be prepared for the future- whether you’re prepared for it or not.

A virtual CFO’s job is to plan out the financial future of your business. Sometimes, that means incorporating an exit strategy as well. At what point will you sell your business? When do you want to retire? When are your restaurant’s finances good enough to tempt future investors?

All of these questions are important things to ask when planning for the future. A virtual CFO can help you answer them.

Not sure who you can trust your franchise accounting and finances to? See why you should choose GSS

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Know What Your Business is Worth

If someone had you put a number on it right now, would you know what your business is worth? Understanding the market value of your business can help you shape your company’s positioning.

It’s easy to become entrenched in your own echo chamber when running a franchise restaurant. Owners can become caught up in the day to day and focus in on their own perception of their restaurant. Understanding the market value of your franchise restaurant can get you out of your echo chamber and viewing your business through a fresh viewpoint.

A virtual CFO can help you understand exactly what your business is worth. But if you’d like to get a general idea, there are a few factors you can take a close look at. How many years are left on your franchise agreement? This can provide value if you have a particularly good franchise agreement with plenty of time left for the new owner to enjoy. However, if the new owner feels your franchise agreement is below average or not up to their standards, the value of your restaurant can decrease.

What’s your customer demographic? Condition of your building and equipment? How has your restaurant been performing? A franchise restaurant with a good performance history will be worth more than one that’s had its ups and downs.

Smooth Out Operations

When you operate as though you’re going to sell your business, you develop repeatable processes that become ingrained in restaurant operations. This makes it easy for the new owner to take over the reins and for employees to adjust to new leadership. Business operations that are smooth, scalable, and easily learned adds value to your franchise restaurant by accentuating the simplicity of a leadership transition.

Part of smoothing out your operations involves keeping meticulous track of your records. Sure, if your books are a little messy it may not be a big deal because after all, you understand them. But when you’re getting your franchise restaurant ready to go on market, suddenly you’re not the only one who could be going through your records.

Meticulously kept books not only benefit your business now, but they also benefit the future owner. Keeping track of the details means that you don’t miss any potential red flags in your restaurant’s finances and the future owner has a complete history of the financial past of the restaurant.

A virtual CFO can guide you through best practices for organizing your books for future use. However, when you outsource all of your accounting, you won’t have to worry about organizing your books. GSS prides itself on outsourced accounting for franchise restaurants. We provide high quality accounting services and handle the details of your F&A- so you don’t have to.

Plan for the Future

Planning for the future can be tough. A virtual CFO can guide you through the choices you’ll need to make when considering your exit strategy, the future of your franchise restaurant, and exactly when you should consider selling. Best of all, a virtual CFO can help you plan for the future today. Understanding your franchise restaurant’s value, positioning in the market, the trends of the industry, all of that falls under the umbrella of a virtual CFO’s expertise.

Here at Global Shared Services, we believe we’re here to serve you. Our job is to make high quality expertise available to franchise restaurants just like yours. We provide high-performance, end-to-end virtual CFO services you can trust, delivered by an expert consultant and tailored to the needs of your business. Choosing our CFO service gives your restaurant business the financial insight you need to scale through operational efficiencies and effective decisions, without unnecessary overhead or risk.

When you’re ready to look ahead and see what’s on the horizon for your franchise restaurant, give us a call today.

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Insights

Managing finances in a restaurant is more than just balancing the books—it’s a constant challenge of keeping cash flow steady, ensuring payroll is accurate, and staying compliant with tax regulations. With 3-5% profit margins and high transaction volumes, even small financial missteps can have serious consequences. Many restaurant operators rely on generalist CPAs or outdated accounting systems, only to find that their financial reports are inaccurate, tax filings are late, and cash flow projections are unclear. Multi-unit operators face even greater hurdles, juggling multiple locations while trying to maintain financial stability and growth. Outsourcing accounting can provide relief, but choosing the right partner is critical. The best providers go beyond basic bookkeeping, offering real-time financial insights, seamless technology integration, and industry-specific expertise. With the right support, restaurant owners can shift their focus from managing spreadsheets to running and growing a successful business. Here’s what to look for—and what to avoid—when selecting an outsourced accounting provider. Understanding Your Restaurant’s Specific Needs Finding the right outsourced accounting partner starts with understanding your restaurant’s unique financial challenges. Whether you operate a single location or a multi-unit franchise, your accounting needs will vary based on business size, operational complexity, and growth goals. A one-size-fits-all approach won’t work—your financial partner should be equipped to handle the nuances of restaurant finance at every stage. How Size and Complexity Impact Financial Management Every restaurant’s financial needs depend on its size and structure. A single-unit restaurant may only need basic bookkeeping, while a multi-unit operator must manage high transaction volumes, centralized reporting, and payroll across multiple locations. Franchisees face additional complexities, balancing brand requirements with independent financial oversight. Operators who manage finances in-house often hit a breaking point as their business grows. Smaller restaurants may start with a local CPA or DIY bookkeeping, but as revenue and expenses increase, manual processes become unsustainable. A lack of dedicated financial expertise can lead to delayed reporting, tax filing errors, and difficulty tracking profitability. The Role of Technology in Restaurant Accounting Technology plays a critical role in modern restaurant financial management. Restaurants using Restaurant365, QuickBooks, or other accounting platforms need an outsourced provider who understands these systems and can seamlessly integrate financial data. Without this expertise, operators risk manual errors, inefficient reporting, and compliance issues. An effective accounting partner should also be familiar with POS systems, payroll platforms, and inventory management software. The ability to extract and analyze data from these systems ensures accurate financial reporting and real-time insights. Planning for Growth with Scalable Financial Solutions

Enhancing Your Restaurant’s Digital Presence

By William Fleming • September 22, 2024

From email to social media to traditional advertising, there are many ways to invite current and potential clients to engage with your business. However, your website is your most powerful tool when it comes to developing meaningful relationships and giving people a comprehensive view of your team, offerings, and ways in which you can help enhance their lives or solve problems. GSS took these benefits into account as we recently designed and unveiled our new site . Our intention revolves around a renewed ability to connect with clients, to showcase our competitive edge, reflect the current state of our services , and introduce strategies involved in helping restauranteurs gain an advantage. Based on my experience, I thought I’d share some ideas to consider regarding your restaurant's digital footprint. Intention is Key Along with awareness, business owners should consider what they want to convey through their website. Do you have a unique menu offering? A team of caring employees? High quality of service? Are you perfect for a lunch date or a family dinner after a sporting event? As your business evolves, make sure your website is updated to mirror that progress and build credibility with your customers. Reflecting Growth and Innovation A redesigned or updated site will allow you to showcase new menu offerings, testimonials, or community involvement which highlight your restaurant's evolution. For instance, GSS recently expanded our accounting and business intelligence services to include payroll . It's a move that communicates our commitment to staying ahead in the restaurant accounting sector and is now a significant part of our website. Enhancing User Experience User experience is equal to customer experience when it comes to technology. When someone visits your website, you want to ensure that their digital experience is as pleasant as the service they'll receive inside your restaurant. Paying attention to technological upgrades and trends such as faster load times, more intuitive navigation, and better mobile responsiveness can give you the upper hand in retaining visitors and encouraging engagement. If you offer a mobile ordering app , you'll want to keep a close eye on that experience while also keeping your menu, hours, and other information up to date. Boosting SEO and Visibility HubSpot reminds us that search engines prioritize websites that offer fresh content and up-to-date information. You want potential customers to hang out as long as possible on the site because that will continue to inform search engines that you are worthy of a higher ranking. By updating your website periodically, you can prioritize improving search engine optimization (SEO), a critical component of using the power of Google and other engines to drive traffic and boost sales. Final Thoughts GSS went into the web design process to create a seamless user experience, including streamlining navigation, enhancing content, and providing tools to drive business success. However, as Harvard Business Review says, "Businesses can't improve operations without honest and substantive feedback."