Old Systems in a New Economy
According to Dr. Maurice Roussety, franchising has become one of the most effective strategies for new businesses in the modern, globalized economy. This is because the backing of a parent company – in terms of finances, time, manpower, and reputation – gives franchises a competitive advantage in such an overly saturated market. This is certainly the case in Australia, where franchising generates revenues in excess of $144 billion annually, and directly employs more than 460,000 Australians through roughly 1,160 different and unique franchising systems.
Listen to the Experts
The best advice that professional consultants such as Maurice Roussety can give is to turn to the expertise of those professionals who have spent decades studying the way that business evolves over time.
Dr. Maurice Roussety (official account on YouTube) is an expert in finance, marketing, franchising, and general business practices. He is in the unique position of being both an accomplished and respected academic as well as a successful and esteemed businessman in his own right. He has two Masters degrees, one in Business Administration and one in Leadership — both from the University of New England in New South Wales. He also holds a Ph.D. from Griffith University (Queensland), with his thesis on intellectual property and franchise-business valuation. As part of his thesis, he also created the Franchise Risk Imputation Model (FRIM), which establishes a framework based on two cornerstones: risk-free rate and total risk as measured by the sum of market specific and company specific risks. According to him, this is useful because “presently there is no web portal or published methodologies that systematically and comprehensively rate the efficiency and goodwill of a franchise system. Independent knowledge about the strength and viability of new, emerging, and mature franchise systems is paramount to franchisors, franchisees, lender, professional advisers, government, and investors”
It pays big to have experience and an understanding of the modern economy. As the strength of the tech era begins to wane, other economic systems and business strategies are emerging as the new top dogs, and those who have caught on to these developments early are at a competitive advantage in the globalized business world. The “startup” craze of the last few decades is no longer viable options. Rather, older economic systems and business strategies are reemerging as viable options for remaining competitive.