How can you turn around a business 180 degrees? When Tony Pinneri’s business was in decline a heart-to-heart with the Snooze franchisor pushed him to achieve the impossible.
Simon Beaty, Snooze’s managing director and Tony Pinneri, franchisee at Taylors Lakes, held a meeting to discuss the situation.
Beaty takes up the story…
“Tony came to the meeting and said “I want to talk to someone about getting out”. There’s a severe cost to pulling the pin so I started to talk about what he could change, what was in his sphere of control.
“In trying to find out where his head was, I had to ask him if he was the right person to be running a business, and that evoked a response. He was almost offended then picked himself up and decided to prove me wrong.
“Once he’d done this, he started talking about a second business and he’s totally different to how he was 12 or 14 months ago. He became focused, motivated and drove his team’s performance.
“He’s a successful franchisee. No-one’s perfect. We want people who are motivated and driven, you can teach management and direct a successful franchisee.
“Tony was driving his management team around to show them the new fit-outs – some in country stores were being progressively refurbished, some metro stores had the new look, and he was putting plans in his mind. He’s now being proactive, putting it all together. Here was someone who was a business owner; we switched the light on, and had the processes to support him. This is where all the gears click together.”
Tony Pinneri, franchisee
“When Simon joined the business he came out to see me and basically said “It’s you. You don’t work in the business”. I have to admit, when Simon said I wasn’t the right person it hit home.
“I had come out of a big company then I only had five people, I didnÕt realise small business still needs to have systems in place.
“I changed staff. I started to apply the systems instead of running by gut feel: Snooze has key performance indicators from items for sale to cleanliness of the shop. Business got better and the calibre of the staff improved. After six months I wanted another shop. It’s turned 180 degrees.
“Now I’m happier running the business. My attitude has changed, the staff have changed and want the business to grow. I like to have teams working together. We have parties and competitions among the staff.
“I walk through a store and I straighten up a pillow or a bed, I lead by example. You need the right staff behind you, franchising is a people game. Now I’m looking for my third store – I want to have a central warehouse to make it easier.
“We’re growing through a recession; we’ve increased our turnover 20 per cent. Profitability should be up quite a bit. Seven months ago I thought it was a waste of time.”