John Young has been involved in the courier industr for quite some time, having worked for a competitor prior to investing in the Melbourne regional Fastway Couriers franchise.

John believes Fastway has a strong product offering and he would invest in the brand again, particularly as online retailers continue to proliferate.

He says the move from competitor to Fastway franchisee was a gradual one. “I had worked for a competitor of Fastway and it was always difficult to win business from them.

“I was then in a position to work with Fastway as a potential customer and got to know more about the business and the network. When the Melbourne franchise became available, I saw it as my opportunity to return to my original home town and become involved in a reputable company,” he says.

RESEARCH

While John was already very familiar with the brand, he nevertheless took the due diligence process very seriously.

“I had experience of Fastway for many years, as a competitor, then as a customer. I spoke to other regional franchisees on several occasions and as I became more interested in purchasing the franchise, I made the extra effort to talk to the courier franchisees.

“I read various franchising magazines and searched online for stories and interviews about the company, and I also did additional research through the Chamber of Commerce and other business organisations,” he adds.

John also took the time to explore the state of the franchise. “I sought advice from financial and legal experts to ensure the franchise was in order before purchasing.

“The assumptions made will sometimes be different to the actual. The degree they vary is always the key to a successful deal or not,” he says.

WHY FASTWAY?

John came to realise Fastway was a market leader during his time both as a competitor and customer, however he opted for the brand for a number of other reasons.

“It was an established brand with a good reputation and credibility in the market place, and they had a history of competitive pricing and I knew they offered a quality service.

“I valued the tiered franchise structure as opposed to employer/employee model, as working with the national master and courier franchisees, who are motivated business owners themselves, helps ensure the growth of the business.”

The brand’s active role in the booming online retail sector also played a part. “Fastway had made great strides in the emerging online retail space. Through their great service levels, many of the new online retailers were choosing Fastway as their delivery partner.

“This was a great industry to invest in as the online retail market has been growing and is expected to continue growing,” he says.

CHALLENGES

John says identifying and developing relationships with new customers can be a challenge. 

“We have a large customer base and we’re trying to find the shortest route possible to identify major potential customers. We then seek to build a relationship with the key decision maker in each business.

“We have local area marketing programs which we utilise at a courier franchisee and SME level, but we are always looking for ways to target decision makers in the large businesses and home based businesses,” he adds.

GOALS

When he first took on the franchise, John had two primary goals for the business. “I wanted to stabilise our existing customer base and improve our service levels.

“Through working with the existing courier franchisees in the region, I reinforced the importance of building customer loyalty and providing customers with the best service levels possible.”

It seems John’s hard work has paid off, as he explains the business has both earned itself more customers and enjoys an improved ability to attract new courier franchisees.

ADVICE

John strongly advises potential franchisees take the time to engage in the due diligence process and seek professional assistance

“As with any investment, I’d advise that a potential franchisee seek quality financial and legal advice. It’s important to have a full understanding of the capital required and estimated running costs.

“They should also thoroughly research the market size and potential so they know where future growth can be obtained,” he says.