Starting a business is relatively difficult process. This is because in essence, most businesses entail trying to sell a new idea into the market. If the idea is well received, then the business will be well placed to take off. However, if the reception of the idea is poor among the targeted clientele, then unless there is a drastic change, such a business is likely to fail. A number of the risks are eliminated when one establishes a franchise company. For instance, one will not be selling a new idea per se. Rather they will be tapping into an existing idea. However, if not well managed, even franchises are susceptible to collapsing. This submission will discuss the critical persons who would be incorporated in the board of a newly established franchise company in the fast food restaurant business.
The board will comprise of a corporate governance expert. Such a person will be critical in providing the company with the necessary advice to ensure that it adheres to good corporate governance practices. The board will also be comprised of an expert in the legal field. Such a person will be well versed with laws governing the environment in which the business operates in as well competition laws. The importance of having such expertise is principally due to the fact that all of a company’s actions must be within the laws of the country in which it operates. A person with legal expertise will be a critical source of information both to the board and the company on how best to navigate out of legal conundrums. They will also be critical in advising the company in the development of internal regulations. In the case of a franchise, this is a very important undertaking as such regulations must to a great extent comply with those of the franchise holder as well as the laws set out by the government or local authority.
The board will also comprise of an expert in the health sector. The fast food business is a relatively sensitive business as it deals with consumables. It is, therefore, crucial to ensure that what the company sells does not contravene any of the health regulations. A health expert will be essential in providing necessary advice to the company in such matters such as best health practices in such a business. The board of the company will also comprise of a person with expertise in the information technology world. Technology is crucial for the success of many businesses today and the fast food business is no exception. The information technology expert will be extremely resourceful in providing advice that will guide the company’s strategy on the adoption and use of technology so as to further its business. Another key person that will sit in the board of the company is a human resource expert. Their expertise is invaluable because as it has been argued within some quarters, the human resource is the most critical resource of a company. They will provide useful advice on the right number of staff to hire as well proper compensation structures. Lastly, the board will also comprise of a person with experience in financial matters. This will preferably be a person who has held a senior financial position in another franchise company. Such a person will provide useful advice in raising funds for the company as well as managing the finances of the company so as to ensure its success and sustainability.
Morris, Michale. Starting A Successful Business: Choose a Business, Plan Your Business, Manage Operations. Philadelphia: Kogan Page, 2011.