What were the key motivating factors in deciding to franchise your business?
There was (nor is there) any full scope franchised competition in the Australian WHS sector – worth more than $1 billion yearly in sales and growing exponentially. To compete effectively, economies of scale in terms of IT, centralised and expert WHS resources, and buying arrangements are vital. Safety can be highly formularised. Get the business model right and typically, all else flows. The model’s tiered business growth – van to multi-van to shopfront anchor of a multi-mobile network – well suits emerging Australian franchisee profiles. SMEs are a particular niche within which the personal attention of franchised business provides a powerful competitive advantage.
What in your view differentiates your franchise from the competitors?
The decision to franchise was made a decade before the event. Development of the initial operation factored in the needs of future franchisees, meaning investment in IT and other systems well ahead of the growth curve. It was also projected that franchisees of the future would be seeking a substantial business, therefore evolution of the pilot from a mobile operation into a shopfront/mobile hybrid. The upshot is that while the SafetyQuip system is relatively young, it is exceptionally sophisticated and robust. The big difference is that in terms of franchised business, SafetyQuip has a high-growth business sector virtually to itself.
What training do you offer franchisees and what is the cost of entry to the franchise?
Training is tightly organised, in depth, and coordinated by one of Australia’s most experienced professionals both in the safety arena and in the art of training itself. Education is open-ended. While initially it covers off product knowledge, workplace health and safety issues, hazard identification, business management, accounting procedures and IT, franchisees are provided with the materials and opportunity to continue furthering their (and their staff’s) expertise both through organised educational modules and daily access to centralised technical support. The franchise fee itself is $65,000, however it is recommended that franchisees allow around a total of $300,000 to provide both for start-up and progression, over time, into the fully developed model.
What is your strategy for the future growth of the system?
Careful selection of franchisees with the ability to perform and willingness to share ideas and contribute constructively to the system’s ‘bank’ of experience and intellect. A rate of growth strictly contingent on identifying and attracting the right people. Progressive improvement of supplier arrangements given increasing volume and relationship management. Solid focus on the SME sector and continuous refinement of marketing processes. Continued focus on franchisee security, profitability and capital growth. Maintenance of a ‘happy’ system by exceeding provisions of the Code of Conduct where possible and recognising the human needs of all involved in the network. One team, one quest.
What are the principal expectations of end-users in your business, and how do you meet these?
In general, small to medium enterprises lack knowledge of safety issues, preventative measures, legislative requirements and associated consequences. They do not know that workplace accidents kill and maim more people every year than are injured or die on the roads. However there is rapidly rising awareness/concern, and with that, an increasing demand for advice and suitable products.
This is not effectively satisfied by the big safety corporates whose focus is on large scale customers.
By being local, mobile, educated, price/range-competitive, and having instant access to centralised expertise, SafetyQuip franchisees fill a huge gap in the market, with pride and satisfaction.
Read about buying a franchise and running a franchise.
23-May-2006