--- title: "Multi-Unit Strategies - Managing with zero-based budgeting" url: https://burnaze.com/article/bb54c717-185f-473b-ba30-183bbb3101ad source: "Franchising.com" original_url: https://www.franchising.com/articles/multiunit_strategies__managing_with_zerobased_budgeting.html author: "Carty Davis" category: "Franchisors" industry: "Franchise Industry" segment: "Franchisors" topics: ["Operations","Development & multi-unit"] published: 2020-01-21T09:00:00.000Z modified: 2026-11-01T03:01:32.876Z image: https://imgs.franchising.com/art/articles/5081_plate.jpg --- # Multi-Unit Strategies - Managing with zero-based budgeting **TL;DR:** Franchisees can use zero-based budgeting to save money and prepare for economic downturns. Investment banker Carty Davis suggests that business owners should review each area of their business to determine which costs are truly needed and which can be eliminated. *By Carty Davis, originally published in Franchising.com on 2020-01-21. [Read the original](https://www.franchising.com/articles/multiunit_strategies__managing_with_zerobased_budgeting.html).* ## Story Though the U.S. economy has been under the longest expansion period in history, there will come a point where growth slows, and yes, even a recession will return. Such an economic downturn will undoubtedly affect the more than 759,000 franchise businesses contributing $451 billion to the U.S. GDP. While many franchise leaders are taking a cautious approach toward the upcoming economic cycle, there are things franchisees can do to better position their business for such a downturn. Investment banker Carty Davis recently wrote about what franchisees can do now to prepare for a turn in the economy. Here's what he says about how zero-based budgeting can help business owners save money. - Use a zero-based budget. Business owners often fall into the trap of budgeting for the same line items year after year. Just because you spent money in an area one year doesn't mean you need to spend it the same way this year or next. Every year, owners should look at each area of their business--utilities, inventory, contracts, etc.--to determine which costs are truly needed and which can be eliminated. - Get Started in Franchising - Franchise Rankings & Awards - Franchise Sales & Development - Featured Franchise Stories Franchising.com is produced by Franchise Update Media. Franchise Update Media has its finger on the pulse of franchising with unrivalled audience intelligence and market driven data. No media company understands the franchise landscape deeper than Franchise Update Media. 1201 New York Avenue NW, Suite 300A Washington, DC 20005 PH. (408) 402-5681 - Franchisee Financing & Lending - Site Selection & Real Estate - Supply Chain & Procurement - Annual Franchise Development Report - Multi-Unit Franchising Conference - Franchise Growth & Marketing Conference - Franchise Leadership & Development Conference - Multi-Unit Franchisee Magazine - Franchise Update Magazine - Franchise Update Franchisor Report - Franchising Express Report - International Franchise Report - Multi-Unit Franchisee Report The multi-unit franchise opportunities listed above are not related to or endorsed by Multi-Unit Franchisee or Franchise Update Media Group. We are not engaged in, supporting, or endorsing any specific franchise, business opportunity, company or individual. No statement in this site is to be construed as a recommendation. We encourage prospective franchise buyers to perform extensive due diligence when considering a franchise opportunity. ## Entities - Franchising.com (publication) - Franchise Industry (sector) - franchise management (topic) - Carty Davis (person) - cost reduction (topic) - economic downturn (topic) - zero-based budgeting (topic) --- Originally reported by Carty Davis, Franchising.com (https://www.franchising.com/articles/multiunit_strategies__managing_with_zerobased_budgeting.html). Summarized by Burnaze (https://burnaze.com/article/bb54c717-185f-473b-ba30-183bbb3101ad).