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what’snew! Melbourne-based entrepreneurs challenge the traditional model of aged care Vancouver in 2001, with the specific purpose of ‘doing aged care differently’. While living in Vancouver for the past two years, Biesse and Fitton saw the synergies between the North American and Australian markets and recognised the need for the Happier Ageing® model in Australia. ‘Study after study proves that a positive mindset is the cornerstone of not only a longer, happier life, but of greater physical health and cognitive function,’ Fitton said. ‘The traditional aged care model continues to focus on the decline and disability associated with age. The strain this places on the healthcare system demands that aged care be done differently, with a model of care that focuses on making lives better – happier and healthier.’
Melbourne-based entrepreneurs Amber Biesse and Matt Fitton have been awarded the Australian Master Franchise Licence by Nurse Next Door, North America’s fastest growing home care provider. The agreement saw the pair launch a new model of aged care in Melbourne earlier
this year, with plans to expand throughout Victoria and Australia in 2020. The Nurse Next Door home care model is built around positive psychology with a focus on mental health and the trademark Happier Ageing® philosophy. Founders John DeHart and Ken Sim launched Nurse Next Door in
As the Australian Government encourages Australians to consider ageing at home as a viable alternative to residential care, the timing to launch Nurse Next Door in Australia could not be more relevant. ‘Inhome health care makes it possible for older Australians to age in their own home, on their own terms,’ said Fitton. https://nursenextdoor.com.au/
Coles partners with Optus Business to drive store efficiencies and innovation Utilising the capabilities of the new network infrastructure, Optus will deliver high-speed data services that will enable Coles to implement future digital strategies and improve service levels for our customers. ‘The increased speeds and capacity of this new network give us the flexibility to rapidly increase the speed at which our stores can access and transfer data,’ Coles Chief Information and Digital Officer Roger Sniezek said. Coles has signed a multi-year partnership with Optus Business for digital network and telecommunications services, delivering a range of benefits to improve the shopping experience and help make life easier for customers and team members. The strategic alliance delivers high-capacity fibre services across the Coles retail, distribution and support centres nationally, improving performance and unlocking new opportunities to introduce innovative business solutions and technologies. Coles customers will also see new Optus-powered products in store and online, and flybuys members will have great new ways to earn points with Optus offers.
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‘We are delighted to be partnering with Optus to leverage the speed, flexibility and agility of the new network, implement new digital initiatives, and ensure we are well-placed to take advantage of emerging technologies in coming years.’ The Optus network will make life easier for team members in store by reducing the time taken to complete regular processes, improving productivity and allowing more time to focus on customer service. ‘Both Coles and Optus Business share a passion for customer service, which is at the heart of our strategic partnership,’ Optus Business Managing Director John Paitaridis said. ‘Our collaboration will help make the lives of more than 115,000 Coles team members easier and we look forward to working with Coles on future initiatives.’
Further growth for The HR Dept with four new franchisees Outsourced human resources specialist The HR Dept has expanded further in Australia with the launch of four new franchisees in Sydney and Perth. The company, which provides HR advice and support on a personal, local basis to small and medium-sized businesses (SMEs), now has nine franchisees operating across Australia. In Perth, the new franchisees are Amanda Fox in the inner city and Chris Muir-Smith in the south. In Sydney, Esther Colman has launched in the eastern suburbs and is joined by Mhairi Holway in the northern beaches area. Each of the experts will provide high quality expertise for the benefit of local SMEs who are looking to develop their people strategies, backed by many years of experience working with large and smaller businesses. Gemma Tumelty, Managing Director of The HR Dept Australia, said: ‘It’s challenging
setting up a new business, but we have enjoyed significant success over the past 18 months and are delighted to welcome these four new franchisees into The HR Dept family. The HR Dept’s footprint in Australia is growing rapidly and we are looking for new HR professionals to help grow our network.’
The HR Dept launched in Australia in 2017, based on the success of a British model which began franchising in 2005 and now has 75 franchisees serving more than 6000 SMEs across the UK, Ireland and Australia. https://hrdept.com.au/
ATO benchmarks help small businesses ‘swim between the flags’ • Manufacturing
is viable, competitive and not at risk of venturing into rough water.’ The benchmarks also help the ATO identify small businesses that may be doing the wrong thing and not properly reporting some or all of their income.
The Australian Taxation Office (ATO) has released updated benchmark data to help small businesses across the country compare their performance with their competitors and ‘swim between the flags’. Assistant Commissioner Peter Holt said that businesses should use the benchmarks to gauge the strength of their business and keep an eye on their competition. ‘We want small businesses to stay afloat, so our benchmarks are a great way to ensure your business
• Automotive electrical services • Machinery and equipment repair and maintenance • Architectural services
‘Think of the benchmarks like the red and yellow flags on the beach. If you stay between the flags, you’ll be less likely to attract our attention,’ Mr Holt said.
• Veterinary services
Updated benchmark data for more than 100 industries is now available for the following categories:
The quickest and easiest way to work out how you compare is by using the business performance check tool in the ATO app, which does the calculations for you. The ATO app is available to download for free from Google Play and Apple app stores.
• Accommodation and food • Building and construction trade services • Education, training, recreation and support services • Health care and personal services
• Retail trade • Transport, postal and warehousing
To view the small business benchmarks, download the ATO app or go to ato.gov.au/BusinessBenchmarks
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BUSINESS SUPPORTING BUSINESS:
FRANCHISES YOU WON’T FInd In tHe Food court if you were asked to name a franchise off the top of your head, what would come to mind – a fast food chain? Perhaps a bakery? something starting with Jim’s? The fact is, there are hundreds of franchise brands across Australia. Franchises are everywhere, from restaurants to pharmacies, gyms to hotels, retail stores to coffee shops. If you are thinking of buying a franchise, there are many different types to choose from. But one type that you may not have considered is business services. Business services franchises are those that offer a service to help and support other business owners – services like marketing and
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promotion, human resources, financial advice, courier services, technical support, and even office supplies. While these may not be the franchises that you will find at your local shopping centre, business services make up a significant proportion of Australia’s franchise economy. According to the latest Franchise Council of Australia (FCA) report, Franchising Australia 2016, retail, food, and accommodation make up 45 per cent of Australian franchise brands, and the remaining 55 per cent is a combination of personal, support and business services. The precise definition of what is considered a business service can vary, which makes it difficult to pigeonhole. However, for the purposes of this feature we will consider it to include any franchise that supports and assists other businesses, and we will explore some key examples of these companies.
Office supplies and waste management
Postal services – couriers, mail and shipping These companies help small, medium and large businesses with all their distribution needs, from regular post and courier delivery to warehousing, shipping, freight and logistics. A small but important percentage of Australian franchisors, postal services are essential for any business that relies on timely and efficient transportation of its products or documents. Well known brands include InXpress, Couriers Please, Fastway, Pack & Send, Mail Boxes Etc., Mail Plus and Australia Post.
Financial services Often considered a separate category to business services, financial and insurance services make up three per cent of the industry in Australia, according to the FCA. It could be argued that financial assistance counts as a business service, as it involves helping business owners with anything from bookkeeping and tax accounting to financial consulting and investment strategy. Franchises in this area include IFG 50/50, First Class Accounts, Resolve Finance and H&R Block.
Marketing Franchises in the marketing industry help other businesses to promote their brand and achieve commercial success. A key example of this is Signarama, an established franchise that offers businesses a range of branding solutions using signs, banners and vehicle wraps. Likewise, Fully Promoted (the franchisor previously known as EmbroidMe) can add a corporate logo or message to anything from uniforms and apparel to drinkware, hats and other custom products, providing many opportunities for brand visibility.
“Keeping in shape, being healthy and wellgroomed can make you feel vibrant and attractive, on the inside and out. Fit and healthy people radiate happiness, self-confidence and vitality.”
In contrast to the bigger picture of marketing and promotion, these franchises support businesses with their day-to-day operations. Consider all the things that you need for an office to run smoothly – ink and toner for the printer; shredding for confidential documents, or other waste removal; a vending machine in the break room; batteries for everything from forklifts to security alarms. Franchises in this area include Battery World, Cartridge World, Provender (vending machines) and Mil-tek (waste solutions).
Printing services Technology has changed the way that many people do business – it’s not uncommon to work on the go, which means we are no longer tethered to a physical office. Unfortunately, this means giving up one of the most useful office perks: access to a commercial printer, scanner and photocopier. This is where printing franchises can help. In addition to professional printing and copying, they also offer graphic design, website and digital services, and custom promotional items. Examples of these franchises include Snap, Kwik Kopy and Minuteman Press.
iT and tech support Small and medium businesses may not have their own IT department or qualified technicians on hand to test electrical appliances for safety. These jobs can be outsourced to other companies, including franchises like Experimac (Apple repairs and upgrades), Geeks on Call (IT) and Jim’s Test and Tag (electrical).
commercial cleaning Every office building needs a cleaner, and Australia has a number of commercial cleaning franchises that provide this service. There are also franchises offering additional services such as commercial carpet cleaning, painting, and property maintenance. Examples of cleaning franchises in Australia are ACE Cleaning Services, AMC Commercial Cleaning, Keen to Clean and Cleancorp. This is by no means an exhaustive list; these are just a few examples of franchisors that exist in the business services sector. The key thing to remember is that becoming a franchisee doesn’t necessarily mean entering the world of retail or hospitality. If you are interested in being part of an organisation that helps other business owners and their staff, then running a business services franchise may be for you. As you do your research and seek professional advice, consider which franchises are available in your area and what you can afford. You may find that when you take some time to look beyond the food court, beyond the shopping centre, to the franchises operating behind the scenes to support local businesses, you will find the one that is perfect for you.
“Franchises in the marketing industry help other businesses to promote their brand and achieve commercial success.”
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“A small but important percentage of Australian franchisors, postal services are essential for any business that relies on timely and efficient transportation of its products or documents.”
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Considering a Business Services franchise? Issues to consider and questions to ask
recruitment and HR services, appliance testing and drug testing. With some of the difficulties currently facing many retail franchised businesses, franchises that offer services to other businesses may be an alternative worth considering. However, if you are considering buying a business services franchise, in addition to your usual due diligence ensure that you carefully consider the issues set out below.
Territorial rights and limitations on exclusivity
The recent franchising inquiry report, referring to 2018 research by IBISWorld, noted that franchising has expanded across several industries, including many different service industries such as administration and support services, rental and hire services, education and
training services, finance and insurance services, construction and trade services, information media and telecommunications services. They can include a wide variety of business services models and concepts, such as cleaning, couriers, bookkeeping, accounting, mortgage and business brokers, strata management, printing and copying,
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It is important to be clear about whether or not you will be granted a geographical territory. If so, make sure you know whether the territory is exclusive or if other franchisees or the franchisor may be competing with you in the territory. Most franchise agreements place limitations on exclusivity, and in some, the territory will be non-exclusive. Often the franchisor will be responsible for referring clients to franchisees. Your franchise agreement might provide you with a first right to service clients in a geographical area.
Client contracts The nature of business services franchising lends itself to longer-term relationships with clients and may work on the basis of fixedterm contracts. There are a number of issues to consider in relation to such contracts. When considering the value of such contracts, take into account the length of the contract and the rights of the client to cancel or terminate the contract. Ask to see a copy of a sample contract. Franchisors will sometimes offer, or even
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“When considering the value of such contracts, take into account the length of the contract and the rights of the client to cancel or terminate the contract. Ask to see a copy of a sample contract.”
guarantee, that they will provide franchisees a certain quantity of work. However, if the contracts can be terminated by the client easily or on short notice, the true value of the contracts may be less than is initially apparent. If a contract is terminated or not renewed, does the franchisor have an obligation to offer you another contract, or are you responsible for finding your own replacement? Often client contracts will be made between the franchisor and the client, not between the franchisee and the client. Although this has its advantages, there may be disadvantages in terms of lack of control by franchisees. When you are referred clients on fixed contracts by the franchisor you may not have the opportunity to negotiate the contract – the price may have already have been determined. If so, the price should be based upon a realistic assessment as to how long and how many people it will take to provide the service. If the job takes longer than anticipated or if more staff are required, the contract may not be as profitable as expected. As part of your pre-purchase and ongoing due diligence, you need to make your own assessment to ensure each contract can be realistically completed for the price being
“With some of the difficulties currently facing many retail franchised businesses, franchises that offer services to other businesses may be an alternative worth considering.” Louise Wolf | Senior Associate | MST Lawyers
paid by the client. You should ask for copies of each contract. Often franchisors are responsible for invoicing and chasing debts from clients. You need to have a clear understanding of the implications for you if a client does not pay or pays late.
Fees Most franchise agreements require the payment of both upfront fees and ongoing royalties (amongst other fees). Royalties are usually structured as a monthly or weekly flat fee or as a percentage of turnover. Upfront fees are sometimes based upon a certain value of client contracts, whereby you can purchase different levels depending on the amount of work you want. This
can be an advantage, because if you only want to work a few hours a week, a lower initial investment can help get you started. However, it is very important to understand what you are getting for the amount that you’re paying, how you go about upgrading to another level, and what happens to your investment if you wish to downgrade. You should also ask about what happens if a client terminates or does not renew its contract and what implications this will have for royalties or other fees that you are paying the franchisor.
Transfer There are obvious advantages to purchasing a business with existing clients. However, given the longer-term nature of business
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E x pER T A dv i c E
“The research process can be daunting and overwhelming. However, you don’t have to do it all alone – help is available.”
services, the clients’ loyalty to the existing franchisee may make it difficult for you to take over as service provider. Ensure the vendor of the business undertakes a process of handover and client referral so the clients will be comfortable with you. Also consider how the outgoing franchisee should be restrained from competing against you.
end of term and restraints At the end of the term, the franchise agreement may prevent you from providing similar services for a certain period of time, either in the geographical area that you have worked in and/or to businesses to which you have provided services. This is an issue that you should consider before purchasing the franchise. If you have provided similar services in the industry before you became a franchisee, then you need to negotiate changes to any clause in the franchise agreement that limits your ability to continue doing so at the end of your term. Similarly, if you introduced your own preexisting clients to the franchised business, you should not agree to being restricted from serving them after the end of the franchise agreement.
“There is no substitute for thoroughly reading all the key documents, including the franchise agreement and disclosure document, yourself. Once you’ve done that, you will be in a better position to ask questions of the franchisor, as well as former and existing franchisees.”
Get help to make the right decision Purchasing any type of franchise is not a decision to be made lightly. However, with business services franchises, there are particularly complex issues that may arise because of the nature of longer-term contracts. These are just a few of the issues that must be considered in depth. It is critical that you take your time to undertake sufficient research and consider all your options as well as the risks. The research process can be daunting and overwhelming. However, you don’t have to do it all alone – help is available. To learn more about franchising, there is a significant amount of valuable information available for free from reputable sources including www.accc.gov.au. There is no substitute for thoroughly reading all the key documents, including the franchise agreement and disclosure document, yourself. Once you’ve
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done that, you will be in a better position to ask questions of the franchisor, as well as former and existing franchisees. Before making your decision, it is vital that you seek advice from accountants, lawyers and business advisers who are experienced in franchising. Once you have taken these basic steps, you are better placed to understand your options and risks, and you will be heading towards making the right decision for you. Louise Wolf is a Senior Associate working within the Corporate Advisory and Franchising Team at MST Lawyers. She advises franchisees and franchisors in relation to franchising, intellectual property and privacy. For more information please contact Louise at: 03 8540 0273 or 03 8540 0200 www.mst.com.au
WORK SMART
NOT
HARD!
IFG 50/50 - A Different Franchise Approach!
NO
Staff Premises Long hours Paper Inventory
WE BUY INVOICES TO ACCELERATE OUR CLIENTS’ CASHFLOW! WE DO NOT LEND MONEY!
GET A FREE eBOOK www.Interfacefinancial.com.au/franchise
AS A FRANCHISEE: s 7ORK IN A MATURE lNANCIAL SERVICE ARENA s 7ORK FROM A HOME BASED ENVIRONMENT s "E PART OF A YEAR OLD INTERNATIONAL ORGANIZATION s 9OUR GROWTH COMES FROM HELPING YOUR CLIENTS GROW s #ONDUCT BUSINESS ON YOUR OWN TIMETABLE s 7ORK ANYWHERE NO TERRITORY s 6IRTUALLY NO PAPERWORK FRANCHISOR HANDLES ALL DAY TO DAY PAPERWORK s .O COLD CALLING TELEMARKETING ADVERTISING OR DIRECT MAIL s 3TART WITH A MODEST WORKING CAPITAL AND GROW AT YOUR OWN SPEED
For more information contact David Banfield, President E: ifg@interfacefinancial.com
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S p OT L i G H T O N S ERv i c E : T H E I N T ER FAC E FI N A N C I A L G R O U P
HArD WOrKers –
nOt WAnteD!
“Our working smart approach is for franchisees to be engaged during what we refer to as core business hours – typically between 10am and 3pm.”
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How often have you seen a headline that says hard workers are not wanted? As the franchisor of the iFG 50/50 franchise from The interface Financial Group, we are actively looking for new franchisees, but not looking for ‘hard workers’. In our experience, hard workers often fall into the ‘workaholic’ category – they are often re-inventors of the wheel and invariably become obsessed with detail, often just for the sake of detail. While these may be admirable traits in some situations, they would not represent a good fit for an Interface franchisee. What’s wrong with hard workers and why don’t they fit for Interface? Let’s be clear: there is absolutely nothing wrong with hard work. It’s just that we don’t see the necessity for hard work when you can substitute that with smart work.
Workaholics We have spent many years building a business and integrating as much technology as possible to ensure that our franchisees are ‘work smart’ individuals and not ‘work hard’ individuals. On a regular basis, we meet potential franchisees who have a history of working 40, 50 or even 60 hours a week – and that’s not for themselves, but for somebody else. Even working those hours for yourself is definitely outside of the Interface box. Our working smart approach is for franchisees to be engaged during what we refer to as core business hours – typically between 10am and 3pm. For individuals who cannot scale down to core business hours, this is probably not the right franchise for you.
Wheel inventors As a franchisor, we are not looking for people who want to reinvent the wheel, and certainly not people who want to reinvent the franchise. The Interface Financial Group has been in operation for over 45 years and, as such, we think
“As a franchisor, we are not looking for people who want to reinvent the wheel, and certainly not people who want to reinvent the franchise.”
we have a well-honed, developed and proven system. That is not to say, however, that we do not continue to add improvements and technology as appropriate. Individuals who want to reinvent the system once they have come on board are invariably not happy as a franchisee. This applies to basically any franchise – the franchisor has done the heavy lifting and crafted the franchise, and it is now established and ready for the franchisee to utilise that developed work to build their own franchise unit.
Detail – Detail – Detail The Interface Financial Group is engaged in a financial service known as invoice discounting. This is a simple and straightforward service whereby our franchisees, in conjunction with ourselves, purchase current quality invoices from our client companies who don’t want to wait 30–90 days to get paid for goods or services that they have already delivered. We are in the business of cash flow acceleration. Needless to say, this financial service requires much attention to detail, so that each and every transaction is documented accurately and in a timely manner. When you are working with money, you need to be very comfortable that the system is proven and will protect both franchisee and franchisor. IFG’s 47 years of experience certainly provides that comfort zone. So, on the one hand we say we are looking
for individuals who are not obsessed with detail, but on the other hand we clearly indicate that our transaction requires much due diligence and documentation. The difference comes when we look at who is doing the paperwork involved in an invoice discounting transaction. While both parties – franchisee and franchisor – are engaged in the transaction, it is the responsibility of the franchisor to handle all the transactional paperwork from start to finish. This means that our franchisees essentially have a paperless franchise and are not caught up with the day-to-day detail of form filling, report writing, bookkeeping, and so on. If you’re someone who is perhaps a recovering workaholic, if you enjoy utilising your people-to-people skills rather than your people-to-paper skills, and if you are an individual who likes the comfort of working under the umbrella of a well-established and proven system, then the IFG 50/50 franchise should be on your radar. We live and work in the age of technology, and The Interface Financial Group have built a tremendous element of technology into the IFG 50/50 franchise. This technology enables franchisees to work smart and not work hard; to put their capital to work, rather than putting themselves to work; and, naturally, to enjoy the benefits that come from being part of such a system. www.interfacefinancial.com.au/franchise
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Obsess over your customers, not your competitors Have you ever noticed the performance difference between two very similar businesses? One seems to be totally on top of things and the other you can tell is struggling.
so on. So how is it that one business can dominate the other and achieve higher margins?
Considering the market conditions, they have the same location, product or service, sales catchment, employment options, and
The current economic outlook is challenging and the need to master customer experience is more critical than ever. When things get
In the majority of situations, market leadership comes down to one very specific and fundamental belief and process: they obsess over their customers and not over their competitors. They put their customer at the centre of everything they do, making sure there is a finely tuned process to deliver optimal service.
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tight, consumers are far more selective with their spending. If you can’t deliver superior service, you will lose out on sales. Right now, the smart companies are reviewing their customer journeys – they have a point of difference in the way they think about customer experience. The key is their mindset around service innovation. These businesses approach the process differently to most. They define innovation as ‘change that adds optimal customer value’; they ensure that everything they do provides value to their customer, and if it doesn’t, they keep developing until they can prove it does. This approach ensures the
FE ATUR E : Busi N ess serv ices “A company that has mastered customer experience doesn’t need to worry about the competition, because the competition is already worrying about them.” Darrell Hardidge | Founder/ceO | SaGUITy
customer’s experience is front and centre, delivering true value beyond the price tag. Optimising customer value is directly proportional to the standards of service you deliver. If you just deliver a standard of satisfaction, you will sell what the market needs and mimimise average sale values. If you obsess over your customers and deliver a superior service model directed to what they value, you will open the door to selling a whole range of things that they want. This opens up your ability to engage with your customers, building a reputation as a forward thinking and value-driven supplier, and this keeps you front of mind. If you’re not remarkable with your service standards, then you’re not memorable and you will quickly become invisible. Marinating market relevance is essential if you want to leverage repeat business and average sale values. One hundred customers
“Different isn’t always better, but better is always different. Obsessing over customers and not over your competitors will build you a powerful reputation of being better.”
averaging $1000 per year is more profitable than 200 customers averaging $500 per year. Mastering the basics of service excellence, and then expanding, is safer than going full tilt to get a sale and not focusing on margins or future transactions. Obsessing over customers rather than competitors has one unique benefit that provides the highest margins and shortest sales cycles. It is rarely measured or understood why it happens and is rarely on any KPIs. It’s the personal referrals supplied by appreciative customers, and most importantly why they were given. Think of your own behaviour: most people are careful about how they give referrals, especially for high value products and services. The business must earn your trust before you will put your personal reputation on the line. For you to give a referral, they must have gone beyond your expectations and delivered a unique experience. The companies that you won’t risk your reputation for will be the ones that focus on themselves and their competitors, and forget about the value they should be giving to you. They have to keep spending money to get you back with special offers, rather than relying upon a respected and trusted customer relationship.
“if you obsess over your customers and deliver a superior service model directed to what they value, you will open the door to selling a whole range of things that they want.”
Obsessing over your customers will cause your team to think about how to improve and how to build security into the customer base. A company that has mastered customer experience doesn’t need to worry about the competition, because the competition is already worrying about them. The competition is more worried about how many of their customers they are about to lose because they cannot match your service experience. Investing in designing a unique customer journey and experience will pay massive dividends, and when done correctly can actually prove significant value on a balance sheet as well as the value of a company’s brand equity. Having a road map to train your team in service excellence is one the highest paying dividends you can achieve with your team. Different isn’t always better, but better is always different. Obsessing over customers and not over your competitors will build you a powerful reputation of being better. Darrell Hardidge is the founder and CEO of Saguity, and the author of The Client Revolution and The 10 Commandments of Client Appreciation. www.saguity.com
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S N A pS H OT: H A R M O N i Q
FRANCHISORS: ARE YOUR SYSTEMS HOLDING YOUR BUSINESS BACK?
It can also integrate financial, sales, reporting and CRM platforms that: • Consolidate all data in one easy-to-access place • Give a real-time view of every store and every aspect of the operation • Provide that critical big picture view of overall franchise performance • Build a solid platform for franchise growth.
Where are you feeling the pain? These are just a few of the signs that your systems may be holding you back:
Network expansion plus growth per store. That’s the twin mission and ultimate challenge for every franchise operation. It’s even more challenging if your franchise model comes with big-ticket purchases and complex inventory, distribution, sales, payment, customer tracking and business information requirements – requirements that your systems may be struggling to keep up with. Inefficient systems and unwieldy processes aren’t just an irritation. They can be a serious impediment to franchise growth. Order books. Spreadsheets. Outdated legacy systems. Arrays of disparate, cobbled-together, sub-optimal systems and manual processes. These are what too many franchisors still rely on to drive operations whose complexities demand much more.
time-devouring manual processes and improving workflow efficiency across the entire operation. • Minimising training time for frequently rotating staff. • Tracking and managing customer interactions – not just orders, but all the touch points that determine a customer’s relationship and value to the business. And perhaps most critically: • Providing the data and business intelligence you need to measure performance precisely across the franchise network – to control costs, identify growth opportunities, and stimulate greater sales and success from franchisees. Without a stable platform to wrest control over all of these complexities, a franchisor will struggle to expand easily into new outlets – let alone provide existing franchisees with the tools and support they need to grow their own businesses.
Automating for franchise growth
Where your systems may not be up to the job
One approach that’s gaining traction with a number of franchisors is using Enterprise Resources Planning (ERP) systems.
Franchises can hit the wall when their systems get in the way of:
ERP systems are business management software solutions that can automate a comprehensive range of even the most complex business processes.
• Maintaining accurate control over the warehousing or back-to-back purchasing of a wide and complicated range of products. • Keeping track of complex stock levels centrally and at every store, ensuring product availability across stores. • Controlling orders efficiently from start to finish, including tracking initial deposits and final payments, plotting delivery scheduling and managing a variety of delivery options. • Automating multi-outlet workflows – reducing human error, relieving staff of
Once used primarily by large manufacturing companies, newer-breed ERPs are now being embraced by a much wider range of businesses. And they’re especially well suited to the needs of a complex, big-ticket franchise operation. An ERP has the ability to automate everything from inventory, distribution, quoting, order management and staff workflow to data collection, reporting, revenue forecasting and even customer communications.
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• Getting real-time data on inventory, aging and product performance is difficult, if not impossible. • Order entry, processing and tracking is clunky and time-consuming. • Linking products to individual sales, orders to customers, and changing or moving around orders is a challenge. • You can’t forecast inventory requirements easily and accurately. • You can’t communicate with customers consistently or automatically about order status and delivery. • You struggle to get precise performance measures: staff performance, productivity, sales, margins, sales per hour and more. • Too much of the operation seems overly cumbersome and subject to human error.
‘If any of these difficulties hit home, it’s time for a harder look at where your systems are letting you down.’ Drew Arthur, Managing Director, Micronet Systems
Drew Arthur is the Managing Director of HARMONiQ and is focused on helping business leaders overcome inefficient inventory, sales, business management and customer relationship management practices by leveraging cutting-edge technology. HARMONiQ has developed a free e-guide to help you evaluate the shortcomings and requirements of your systems. To download a copy of ERP Automation – is an ERP system the right move for my franchise? visit harmoniq.com.au/franchisingsoftware.
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HOW tO be A FrAncHise
tHAt DeLivers:
KEEPING YOUR CUSTOMERS HAPPY IN THE AGE OF CONVENIENCE
“The best franchises are driven by regular communication, respect and trust between the franchisor and franchisees.” Peter Lipinski | ceO | FaSTway COUrIerS
in today’s digital, ‘always on’ world, everyone is looking for instant gratification, convenience and a seamless experience. Gone are the days when people were happy to wait weeks for a product to arrive, or even have time to visit the post office during work hours.
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So, what are some tips to ensure that your business can keep up, and continue to delight its customers? In my experience, there are three key ingredients in making this happen for a franchise.
Regular catch-ups with franchisees help ensure that the network is working collaboratively, which is essential when developing the tools, technology and systems that will support your business. Consulting
Work collaboratively as one team
Working together as a team is integral to the success of any business, but especially important for a franchise network. The best franchises are driven by regular communication, respect and trust between the franchisor and franchisees. These days it’s too easy to rely predominantly on internet communications. While email support packs and regular newsletters and updates are important, never underestimate the power of actual face time. Getting your franchisees and staff all in one room is incredibly beneficial – not only for them but for the franchisor, too!
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with your franchisees and staff gives you the feedback you need to ensure that you are investing in and implementing the right changes. Recently at Fastway we’ve focused on increasing face time with our franchisees, and it’s been wonderful to hear the positive feedback about how we’ve been listening and taking their experience and recommendations on board. This year the focus of our annual convention was ‘one vision’, highlighting just how important collaboration is for our company. We also hold in-house liaison visits – this year, rather than meeting with different groups over several days, we had one event for everyone. Hosting all of our regional franchisees in the one room allows us to keep on the same page and move forward more effectively as a team. One of the main reasons that people choose to join a franchise is to benefit from the support of a network. This involves not only
successful business. The key is to ensure that when you listen to your customers you are actually doing something with the feedback. Whether it’s through surveys, reviews or market research, you need to take that information and use it to implement changes that will help the franchise and franchisees improve relationships with customers every day.
tools and support from the support office but also networking with other franchisees. When you are organising conferences or events, make sure you organise plenty of opportunities for your franchisees to network with each other!
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Embrace change and make it work for your business
With more than 1 billion users worldwide and over 2.5 million apps available across the Google and Apple digital marketplaces, smart phones have become much more than just a device in our pockets. For many, their smartphone is like an extension of their hand – a constant connection to the world and a means to getting what they want instantly. This has had a profound impact on customer service across all industries. In my experience, the key to dealing with this sort of disruption is always to take a step back, asking yourself not just how this
affects your business, but also how this can benefit your business. The rise of the sharing economy, for example, can seem threatening for many businesses, but you need to ask yourself the question: ‘how can we make this work for our business and our franchisees’ businesses?’ For example, at Fastway we decided to develop our own crowd-sourced delivery technology to help scale up and meet the growing delivery demand spurred by Australia’s booming e-commerce market. Blu Couriers taps into the sharing economy to help our regional and courier franchisees manage surges in delivery volumes; it’s also a fantastic solution for people in the community looking for a flexible way to earn some extra cash.
3
Listen to your customers
It’s no secret: listening to your customers is essential for running a
At Fastway, we know that 85% of customers want parcels delivered to their homes while 30% aren’t home during the day for deliveries. This is a challenge not just for our customers but also for the franchisee trying to complete the delivery. We know that our customers are busy and many simply can’t get to the post office in business hours. Our solution is Parcel Connect. Parcel Connect taps into the diverse business hours of local stores and petrol stations to provide a close and convenient drop-off and collection point for parcels. Customers can drop off and pick up their parcels at a time that suits them using one of several Parcel Connect locations across Australia. We have had excellent feedback from our customers and from our courier franchisees, too! As with any services and technology, customer feedback is crucial – not only throughout the development and launch but also post launch. So don’t forget to check in with your customers for feedback, and make sure you use that valuable information to help you and your franchisees – not just to deliver great service, but to exceed customer expectations. Peter Lipinski brings a wealth of knowledge and experience to his role as CEO of Fastway Couriers, with over 20 years’ experience in senior positions across transport, leisure, manufacturing and management consulting. His extensive industry experience and strong focus on customer service have been integral to Fastway’s successful innovation in parcel delivery. www.fastway.com.au
Business Franchise Australia and New Zealand 71
FE ATUR E : BUSI N ESS SERV ICES
“Don’t forget to check in with your customers for feedback, and make sure you use that valuable information to help you and your franchisees – not just to deliver great service, but to exceed customer expectations.”
FE ATUR E : BUSI N ESS SERV ICES
S N A PS H OT: FC F FI R E & EL ECT R I CA L
FCF FIRE & ELECTRICAL WANTS YOU! Nothing is more important than safety. And when it comes to protecting Australian businesses from fire – for their staff, customers, property or family – FCF has the right services, products and advice. FCF conducts fire safety assessments of home, office and industrial premises, and offers clients a complete fire protection service including supply, installation, testing, servicing and maintenance. Established in 2008 by founder and CEO Jacob Foster, FCF Fire & Electrical provides quality professional servicing and advice for business clients across the country. FCF is responsible for maintaining the fire, safety and electrical requirements of a national network of businesses to ensure that they meet government and industry standards. Mr Foster came to the industry with a background as an electrician. ‘What appealed to me about the fire industry was the repeat work that comes from routine maintenance,’ he says. ‘We’ll go to a site and test a fire extinguisher, for example, and if it fails we replace it – then six months later we’re back again.’ This type of recurring work enables franchisees to develop an ongoing relationship with their clients. ‘If I pick up a
new client, within six months I’m guaranteed to see them again,’ says Mr Foster. ‘The safety industry isn’t going anywhere, and it’s an industry that creates its own work.’ FCF proudly serves over 6500 clients across Australia. While primarily a businessto-business service, they also work with residential clients. Business clients of FCF include: • Schools and childcare • Local councils • Health services • Fuel stations • Hotels • Retail stores and offices • Community organisations. FCF was the first company to franchise in the fire industry, making it a true industry leader. Since the first franchise in 2012, there are now 14 franchises operating in Australia – and they are seeking to expand. ‘The majority of our franchisees are tradespeople, but you don’t have to be an electrician or a plumber to own a franchise,’ explains Mr Foster. ‘With our training and the help of the FCF support team, we make it really easy to transition into the fire industry. Australia’s fire standards are very straightforward, which makes life easy for people who want to enter the industry.’ Franchisees and employees all receive full training and support. ‘Our training goes above and beyond what is state-legislated, and our ongoing training makes the team at FCF one of the best,’ Mr Foster says. The company has a friendly and professional
72 Business Franchise Australia and New Zealand
culture and believes in its core values of good people, family, an honest work ethic, and a willingness to be the best. It’s an attitude that is working well for the company and for their clients. ‘FCF have been providing fire equipment servicing and Test & Tag services to our company for nine months,’ one testimonial reads. ‘What began as a solution to a problem in North Queensland has quickly evolved into a solid working relationship down the eastern seaboard of Australia.’ FCF Fire & Electrical not only operates in capital cities, but also has a strong focus on regional areas. Given Australia’s large distances, having the right territory managers to provide services in these regions is key to the company’s success. As the company grows in Australia, expansion ‘across the ditch’ is also on the horizon. This would be a natural next step for FCF. ‘New Zealand would be ideal for us, as the codes and standards there are much the same as Australia,’ says Mr Foster. For anyone interested in becoming a master franchisor in New Zealand, this could be the ideal opportunity to represent the growing brand internationally. For prospective franchisees in Australia, FCF want to hear from you, regardless of your industry background or your location. ‘We are looking for franchisees anywhere in Australia, and I would encourage you to get in touch,’ Mr Foster says. For more information on joining FCF Fire & Electrical as a franchisee, visit www.fcfnational.com.au or call 1300 375 884.