5 minute read
CALLING IN THE BIG GUNS
Following Franchise Accountants’ advice has brought success for multiunit gym owner.
With a degree of optimism he described as “nearly stupid” Neil White bought a Snap Fitness gym in New Plymouth. “There is no doubt it was performing poorly in the absence of a hands-on franchisee,” he says, “the whole thing was a bit of a disaster from a potential new owner’s perspective. I’m obstinate and stubborn and I had a vision of what it was going to be like – but in reality, I had no idea what I was doing!
“The price reflected the commercial reality, so I went ahead and quickly found far more was going on than I knew about. All the staff left very quickly, leaving me sitting in the wreckage of a business. I had two priorities – refit and grow the client database. What assisted me greatly was bringing on board Hayden Cargo and the team at Franchise Accountants. That made a big difference and was definitely a factor in the success of the business.”
Five years on, Neil, a former Metropolitan Police Officer who had spent a couple of years sidelined by a bad accident, has bounced back. So much so, that he has bought another Snap Fitness gym in Cambridge. “After my accident I took a serious interest in wellness training and rehab,” he explains. “That route petered out and I decided franchised gyms were a better bet – someone to hold your hand in business.
“Gym businesses do tend to be fickle as every one of them is competing for clients and changing their special offers every week,” explains Neil. “Some members jump between them, taking the best offer every six months. You have to reckon on losing members every month, and trust that your marketing activity has attracted fresh clientele to make up the difference. I achieved the refit and rebuilt the database in New Plymouth, but initially it was by working 16 hours a day, 6 days a week – I did everything myself at the beginning because I was the only person I could rely on to get things done!”
Face to face
Neil doesn’t mind hard work, but he makes no bones about his grasp of figures. “If you are in business you have to play to your strengths. I don’t understand the details of the financial side … but I know a man who does! In my view,” Neil continues, “accountants are in general a little bit risk averse. I spoke to a couple of them before I engaged Franchise Accountants, and both of them had suggested ‘don’t go anywhere near that gym!’
When I met Hayden we had a long chat about what was needed, what the running costs would be and how to structure the debt. All of this I grasped broadly – what made a difference was that I was able to sit down and talk about it in detail, face to face with Hayden. I don’t like emails as a rule and Franchise Accountants have excelled themselves in a willingness to be available on the phone, or in person, whenever I have needed advice or guidance.”
A finger on the pulse
Franchise Accountants are six times winners of Service Provider of the Year at the Westpac New Zealand Franchise awards. “We think that demonstrates how closely we have our fingers on the pulse when it comes to high-performing franchised businesses,” says Hayden. “Many good entrepreneurs, and I know Neil will agree with me, are not accountants. They need professional advice delivered in a way they can understand. The first question any would be franchisee needs to ask is this: ‘Is the business I’m buying viable, sustainable and profitable?’
“It is not always the case that the answers to those three essential questions are clear. It is our job to tease out the good, the bad, the ugly and anything else the figures can reveal. It’s not our job to stifle good commercial ideas – despite what is often said about accountants,” Hayden laughs. “We provide the foundation in figures that demonstrate to entrepreneurial minds whether their ideas can work.”
A very different experience
“After five years operating in New Plymouth,” continues Neil, “Hayden insisted I was doing well because I was paying tax. It was time to expand, and in April this year I took over another franchise in Cambridge. It’s been a very different experience, and not just because I’m wiser. I knew what I was getting into as a result of the financial forensics applied by Franchise Accountants. I also had very specific questions, particularly around leasing.
“Getting the best advice usually involves asking the right questions and from my experience Franchise Accountants stand out because I’ve always been able to meet with them and discuss all the options.”
“We are proud to say that many of our clients have praised the clarity with which we present figures to them,” says Hayden. “We have won multiple franchise awards for good reason – we understand franchising and we have the tools to enable owners and entrepreneurs to do what they do best – grow and run their business.”
Advertiser Info
Franchise Accountants
www.franchiseaccountants.co.nz
Contact
Hayden Cargo
0800 555 80 20
hcargo@franchiseaccountants.co.nz pmorrison@franchiseaccountants.co.nz
