BEYOND EXPECTATIONS

Finding fulfilment beyond the financial rewards.

It’s many people’s dream – to be your own boss – but in reality, it takes a combination of preparedness, training, skills, commitment and support to run a business that will meet and even exceed the personal and financial results you expect. That’s where buying a franchise can give you a competitive advantage from day one. You’ll not just be provided with a business model that gives you the framework you need to succeed – you’ll be taught to operate the business to maximise its potential and guided as you learn to get the most benefit for yourself and your family out of it.

Of course, no franchise is a guaranteed success and a potential franchisee must always be cautious (see page 44). But there is no doubt that, provided you choose well, buying a franchise significantly increases the chances of getting what you want – and more – out of owning your own business.

A long-term lens

Looking at their businesses and lives through a long-term lens, we asked three women from franchised businesses in different industries to share how their experiences as franchisees have elevated their lives beyond their expectations.

After several years as the owner of a Jean Jones clothing franchise, Shirley Buxton swapped coat hangers for coffee, choosing to go into ownership of a Muffin Break franchise. Taking the reins 17 years ago at Muffin Break Coastlands in Paraparaumu, Shirley had to learn the ropes in an entirely new industry, but still under the familiar auspices of franchising.

“Back then, I saw the Coastlands franchise opportunity in a newspaper advert the size of a postage stamp. I’d previously thought ‘no’ to cafés but realised that, irrespective of the weather, the economy, or whatever else is going on in life, people still want coffee.”

Trust and trepidation

When you buy a franchise, you’re buying a ready-made business format that someone else has researched and developed for you. Your own business may not yet exist in the location you want, but all the product design, service parameters, business systems and profitability studies have been carried out already. You buy the franchise and it’s up to your own efforts to make it successful in your area.

Shirley explains just how scary that can be, “Not having a café background, I was very nervous about going into this. But I knew that being part of a franchise, your hand gets held to a certain extent.”

Buying the franchise with husband Mark, Shirley ran the business herself, with Mark concurrently running his own business venture. Shirley was well supported from the outset by the Muffin Break franchise system, she says. However, she still recalls the sense of trepidation she felt once the initial training period was over.

“I think anyone who buys a business knows it’s easy to run the business until you get the keys!

“I remember the feeling when the trainer left. It was an ‘Oh my goodness’ moment! It had been a managed site previously, and I don’t mind admitting it was difficult to get it established in the early days. But we got through that first year!”

From year one to now, 18 years later, Shirley has come much further than she ever anticipated in the hospitality industry she stumbled upon when skimming that print newspaper. “I didn’t think of this, or anything for that matter, as a long-term career,” she says. “Though it’s ended up being the longest held ‘job’ I’ve ever had.”

Multiplying move

Two years after moving into the Muffin Break franchise, Shirley became a multi-unit franchise owner when she bought Muffin Break Palmerston North 15 years ago. Rather than seeing this as doubling her workload, she embraced not only the financial potential of dual franchise ownership, but the opportunity for sharing resources between the two for mutual benefit.

“We seem to have been quite lucky; if one site is having issues, the other is running smoothly. It has had its challenges. I didn’t know where to put myself, to begin with. But I was very lucky with the staff members I had at the time; I could rely on one of them to basically run it for me when I wasn’t at that site.”

She now has a staff of 15 and stresses the importance of building a team consisting of such reliable, capable individuals. She says, “This is particularly valuable when you go away or are unavailable for whatever reason; you can tell your staff if there’s anything they need support with, they can ring this person.”

Strong behind-the-scenes

Having the backing of a strong franchise system underpins this person-centric backbone to the business, Shirley has discovered.

“The franchisor company is FoodCo New Zealand. They do a lot of the hard yards that you don’t even know about – more than I initially realised. This becomes particularly apparent – and important - during an economic downturn, including things like liaising with suppliers and getting good deals on products. These are some of the supportive measures we sometimes don’t appreciate as franchisees – how much time and energy can go into activities like that. They are some of the many unsung benefits of being part of a franchise.”

Shirley is proof that a strong drive and determination to succeed can see franchisees beyond the most challenging early years, with the support of a strong system. She is full of, and generous with, her advice for other people who may be feeling they are wannabe franchisees.

“If you decide to go into café franchise ownership, for example, I’d recommend going into as many similar cafés as possible and talk to other franchisees in the system too. See how these businesses are being run. Get a good understanding of how they operate. Look at what you think is working well and what’s not.

“Over the first 2-3 years, in particular, you have got to work really hard. But one particularly important piece of advice I’d give is to make sure you pay yourself drawings, or a wage, or whatever you choose to call it.

“Make sure you are putting some money aside each week for a rainy day, because we all know they come! That might be a dishwasher that breaks down or a coffee machine that needs replacing. You need to have the ability to access funds urgently when you need them, so you know you can pay for that eventuality.

“Doing your due diligence is also a key piece of advice I’d give to anyone, from the outset. Nobody goes into business to fail! As a franchisee in an established supportive system, however, you are minimising that risk.”

Complete career change

In an unconventional move, Jennie Meecham quit nursing – for flooring. Moving into New Zealand’s first Choices Flooring business with husband Graham, a banker, was the start of something she could not have envisaged. “When my parents got sick, I decided I needed more flexibility than being a registered nurse could offer me. I’m still looking after people, however. I’m still caring for people and helping people make decisions – those are my basic needs met.”

Buying what was Charteris in Hamilton, before it came under the Choices Flooring umbrella, Jennie experienced the switch to a co-operative franchise. She explains, “We bought it as a company that had been operating for 40-plus years as Murray Charteris Flooring Specialists. Then the well-established Australian brand Choices Flooring invited us to join them, and we decided to reference the history of the business in the name - Choices Flooring Hamilton by Charteris. Getting into this business turned out to be the best career move I could have made.

“Although all the stores are privately owned and operated, we are run as a co-operative group, with a central team at Choices Flooring. They do all the product research, marketing, online and more.”

Brand and marketing clout

The marketing insight and drive from behind the scenes allowed Jennie to transform her store in ways she, and her customers, are delighted with. She says, “I think a lot of people viewed flooring retail as quite old fashioned. You’d have your samples all arranged according to the brand.

“The challenge was getting our suppliers to understand the Choices Flooring way of looking after the customers’ needs first and making it easier for them to find the flooring they are looking for,” says Jennie.

“We have always got this back up from the franchisor team, keeping us up to date with the latest marketing ideas or the latest technology. People don’t physically come into store as much as they used to, so that’s meant our website has got to be really switched on to capture people at that browsing point.”

Risk, reputation, reward

Taking a leap into the unknown with a franchise that was new to New Zealand has paid dividends for Jennie and Graham, with the business weathering the significant storms that have come over the past seven years of ownership.

“It was certainly a gamble that we took. Choices Flooring had 140 stores in Australia at the time we opened up here, so they had that strong background, but it was about getting confidence in the brand with people here. It was about being open to changing the way we do things, and the way customers see carpet retail here in New Zealand.

“It has been tough times for everyone in retail recently, and you just have to go with the flow and have trust in your system. We have got through it and hopefully will continue to go up and up. Being part of an amazing team in a very successful group with Choices Flooring is incredible – we are thrilled that we joined them.”

Jennie’s advice to others considering a move into franchising? “I think the most important thing is that you find the right fit for you and that you understand what you are getting into. Talk to others in the same industry to get a feel for the business model.

“Make sure you have the support of a good team behind you and ensure that your goals and expectations align. The strategic plan has always aligned with what we wanted to achieve as store owners, we’ve been able to drive revenue and customer growth, with that support.”

For Graham and Jennie, being part of the Choices Flooring family goes beyond business – it’s about making a difference locally too. “We’ve been able to support local sports teams and charities, thanks to the professional marketing resources we can draw on. Being part of the franchise group has allowed us to give back to our community in meaningful ways,” says Jennie.

Family first

Shabina Din has made her life look the way she once only dreamed it could. From working as a barista in a café, doing hours that didn’t really suit her, she now rules her own roost with a thriving V.I.P. Home Services franchise. Earning more than she ever imagined she would, she owns her own home, plus a rental property, and is currently planning her next big overseas travel adventure with the family she has raised alongside her business.

Shortly after having the first of her two sons, Shabina made the call to change her life for good. “I’d had my baby boy and, working in a café, the hours weren’t good for me and the family. I’d be at work when my husband was at home looking after the baby, then we’d swap. We weren’t getting the family time together that we needed.”

Something had to change. And inspiration was found close to home. “My mum had a cleaning business,” explains Shabina, “so I was helping her out and thought ‘this could be a good thing for me!’ Although helping mum gave me good experience, it was not the kind of business that really allowed you to grow. We started investigating franchises that had real business growth potential.”

Location and lifestyle

When she discovered a V.I.P Home Services franchise available in Papakura, the stars aligned. “We live in Manurewa, so the Papakura franchise was a great fit, being so close to home and I knew the money would be good, as it was an existing business. Being part of a franchise helps you a lot. You don’t have to look for clients, you can concentrate on looking after them. And there’s always someone there to help out in the background.

“V.I.P. has a four-week training period for all franchisees, which taught me to work efficiently, to the highest standards. And it educated me on how to run a proper business, which neither I nor my husband had any real experience of.”

Initially, Shabina worked in the business part-time, and her husband Faiyazu continued in his job, helping out when needed. As half of the business involved after hours work, this proved a great way to generate some extra cash while managing the demands of a young family. “It was then very easy to grow the business with the continued support of the franchisors and, before long, we were employing people, too.

“For a while, we were working seven days a week, after we bought our first house. Today, we’ve cut back a bit. The children are now 10 and 13, and the business is flexible enough for us to collect them every day from school and make a very good income.

“There are always ups and downs,” says Shabina. “You have to put your energy, time and effort into your franchise before you start to make a profit. If you have got the patience, you will be rewarded.”

She has major clients on her books and calls on additional staff to help out where needed, always safe in the knowledge she has the backing of the wider franchise and franchisors.

Shabina and family enjoyed a lavish family holiday to Bali, Singapore and Thailand last year and she’s currently planning their next adventure. “Life’s looking good,” she smiles.

Go for gold

Everyone has a different ideal for success in life: increased net worth, financial independence, a home of your own, a good education for your children? Do you want to be your own boss or contribute to your community somehow? Figure out what your gold medal standard is and set goals to help you create what you want in your life.

The important thing to remember is that these goals all require long-term thinking – you can’t achieve them overnight. And when you buy a franchise, it’s wise to apply that long-term approach, too. Buying a franchise is not a way to ‘get rich quick’ overnight – it’s about investing in a proven business model that will help you make the most of that investment to achieve your financial and life goals.

Established and new franchise systems have different risks and rewards, but if you take good professional advice from franchise-experienced accountants, lawyers and finance experts, follow the systems, take advantage of all the support offered, and keep your eye on the long-term goals, buying a franchise can help you reach and go beyond expectations.

Where do I start?

Extra resources to help you set your expectations straight.

What’s the best franchise for you? With hundreds of franchise opportunities to choose from (see the Directory on page 60), how do you choose one that’s going to perform for you? Here’s our road map to starting up in business: www.franchise.co.nz/articles/639

Found a franchise you’re keen on, but need to know if it’s the right one? Here are 250 questions to ask the franchisor before you buy: www.franchise.co.nz/articles/77 and a further 50 questions to ask other franchisees already operating the business: www.franchise.co.nz/articles/935

Feel you’re ready to take the leap into buying a franchise? Get the right advice to help you with your due diligence, so that you can be sure you’ve made the right decision and can free your brain up to focus on growing your new business: www.franchise.co.nz/articles/413

About the Author

Heather Barker Vermeer is the contributing editor for Franchise New Zealand media. She has worked as a writer and editor for over 20 years and is founder of Human Interest NZ, a business with a focus on storytelling for a range of organisations across various sectors.