From Private Equity to Franchise Success - Collin Rutherford Interviews Me

I always enjoy being interviewed and I recently appeared with Collin Rutherford on the Business Blitz podcast to talk about how complex and unique the franchising model is from traditional business growth. 

Franchising as a Unique Mode

I went into franchising believing it was just a matter of packaging a service and selling it. But it is, of course, a great deal more than that. Franchising involves numerous types of continuing support and guidance for franchisees who, in this context, become key customers rather than simply being extensions of his business.

As I dug deeper into the world of franchising, I knew that to succeed in this world required a mindset change about the concept of business relationships. I found that in order to create a successful franchise system, I had to provide complete training, essential resources, and ongoing support to help the franchisees develop. This change reveals the core of the very definition of franchising: it is not about expansion per se; it is creating an enabling platform where the franchisee can prosper.

Embracing Digital Nomadism

One of the early selling points of MaidThis as a franchise was that it could be run remotely, and for me personally that was across 55 countries. This was a pivotal shift that opened up my world but also showed just how digital nomadism could redefine the traditional boundaries of business. For me and many other digital nomad entrepreneurs, what was most necessary to grow was innovative thinking and adaptability. The chance to travel and see the world was just a bonus.

Growth Challenges and Learning Curve

In the early years, I encountered a lot of other challenges while I found my way through the relatively uncharted area of the online cleaning industry. My main initial struggles came as a result of the lack of knowledge regarding a franchise model for this newer type of business, which led to slow, obstacle-filled growth. During this period, I had to learn the ropes of franchising myself: how to create an FDD, how to build state registrations, how much to charge in royalty fees, and how to put together an effective operational support system for franchisees. This learning curve — often unwritten and less discussed in the entrepreneurial journey — highlights the fact that the road to success is often built by getting through tough times and committing to continuous learning.

Financial Investment and Ongoing Costs

Many franchises require a serious initial investment that will start at about $40,000 (and quickly grows from there) and also require ongoing marketing and operational expenses (which are very often underestimated). In my discovery calls I note that these are the financial realities prospective franchise owners must be aware of. Too many new franchisees forget key expenses for marketing, staffing, and franchisee support that are crucial to their long-term success and sustainability in the competitive franchise environment. Thorough financial planning is very important for those considering either franchising or entrepreneurship.

Marketing Strategies for Success

No single marketing strategy — whether digital or community-based — can be solely relied upon for customer acquisition. It's tough to rely solely on Yelp and Google Ads when the marketing landscape has changed so dramatically over the last decade. What this means is a mix of different approaches leading toward an economically feasible customer base.

In particular, community marketing is important to engender solid, long-lasting relationships with clients, which naturally translates into customer loyalty and repeat business. My strategy of focusing on trust and local networks pays dividends in customer retention but also demonstrates the need to adapt marketing strategies. This will continue to change, and flexibility will be crucial to accommodating new methodologies that will be thrown into the mix.

Hiring and Team Management

For high service and customer satisfaction, reliability, communication, and attitude in hiring form the cornerstone for any cleaning service industry. This is something far more critical to me than mere cleaning experience. By selecting responsible employees who display good people-oriented skills, one can achieve an organization with employees committed to excellence.

I'm also big on personality assessment tests at the time of hiring. These assessments guarantee a correct fit not only for the job but also as a team member. This approach helps in team compatibility and finally performance and service quality in the cleaning industry.

Photo by the blowup on Unsplash

This article was written by Neel from MaidThis Franchise, a remote-local franchise opportunity for people looking to escape the rat race and reach financial freedom. Learn more here.