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4 ways to achieve franchisee success

Sarah Stowe

Small business is in Nic Nayef’s blood. “My family always owned small business,” he says. For him, the path to success has been as a franchisee within the Hairhouse Warehouse network. But the group’s just named Multi-unit Franchisee of the Year says it all started very differently more than a decade ago.

“I’ve been with Hairhouse Warehouse since 2001 when I was studying and needed part time job. I began working at Knox City where my brother started – he’s now MD of the company.”

Two days a week Nic was the general assistant – whatever needed doing, he did it – and it gave him a great insight into the running of a store.

Once he completed his marketing degree he was given a marketing position in the outlet. At the same time he was helping out his brother Emad in his two Melbourne stores

In 2003, he was 23, and a buyer for Hairhouse Warehouse which then had about 60 stores, as well as mananaging three of them. By 2005 the brothers has bought the Knox City outlet and for the first time Nic was involved as a franchisee.

“From 2006 till this year we purchased a store every year. Some we sold – now we have eight Hairhouse Warehouse outlets, in Melbourne and one in Canberra, and two international hair salons in Melbourne.

There’s an entrepreneurial spirit encouraged at Hairhouse Warehouse among franchisees who are able to employ their initiative with suppliers, and this is culture appeals to Nic.

“It’s up to you to make what you can of the business. We have all the infrastructure but [success] is up to the individual and how you work with suppliers and the relationships you build.”

The most recent accolades for the Chadstone store owned by Nic and Emad are awards announced at the recent Hairhouse Warehouse conference and gala dinner, notably the Multi-unit Franchisee of the Year, and awards for local area marketing, the manager, and the piercing team.

“Four wins from four entries,” he says. “Trophies are important but nothing like the recognition among your peers and suppliers.”

SO WHAT IS THE KEY TO HIS SUCCESS?

Nic’s energy is harnessed not just in his stores, but by extending himself to big picture projects that benefit the brand overall.

With eight stores appearing in the list of the top 10 performers, Nic is involved in the head office buying committee and gives feedback on new initiatives.

“I give my own input. Will it be applicable in the real world? It has to have cut through,” he says.

“I’m extremely passionate about the brand and business. You don’t count the hours. And it’s about bettering the lives of me and my family and the 200 staff.”

Nic takes his responsibility as an employer and entrepreneur very seriously.

Nic Nayef celebrates his team’s success at the Hairhouse Warehouse annual awards

“As leaders you have more pressure, you need to succeed. I have 200 mortgages and car payments on the line because everyone is reliant on the business. It impacts so many people. Everything you  do is calculated and measured.  We are always trying to take the business to another level.

“I go overseas to see hair expos because we have got to be market leaders, and put the brand front of mind. You can’t stay still, you need to always stay in the consumer’s mind as relevant and be constantly reinventing yourself.”

One advantage the retail business has is its diversified revenue stream – beauty and waxing, piercing, retail and a hair salon. “It’s like having four businesses. And you can’t buy service online, so for us there’s a salon focus and we want to up the ante.”

So what are the challenges today?

“For us it’s trying to create consistency in our group. Some stores rival the best in the business anywhere in Australia, but we need to be consistent. We have an emphasis on salon direction and how people view our salons. We want to be seen first and foremost as a salon that sells retail.”

4 WAYS TO EMULATE SUCCESS

Here are Nic’s tips for achieving success as a franchisee:

  1. Look at and copy the habits and systems of successful franchisees. All have similar characteristics, although they are not carbon copies.
  2. Communicate with your staff, the shopping centres and suppliers.
  3. You’ve really go to work it, we’re big on education in hair and beauty. We spend a lot of money on upskilling our staff, we want to improve ourselves.
  4. Be hands on and passionate.

Images: Hairhouse Warehouse