Is it a good idea to buy a Poolwerx franchise?

Are you thinking of buying a Poolwerx franchise?

This might be a really good time to consider it.

With COVID restrictions impacting people’s travel plans, more people are staying at home.
And with summer here, we know pools will be getting a lot of attention.

A Poolwerx franchise is a well developed franchise model. In fact, they have a development plan for you as the franchise owner.

In the Poolwerx franchise model, you typically start out as a ‘man in a van’ to get to know the business. This helps you learn how the technical side of the business works and lets you build your customer base at the same time.

Then as it grows, the model is that you take on another van, with a technician in the second van. So, that means you have two vans on the road. Fully signwritten, which means you’re getting twice the amount of visibility in your territory.

The plan then provides for a retail store after a few years. A sensible growth path, building your business and asset base along the way. It’s not too aggressive and gives you the chance to build your business in a sensible manner.

The Poolwerx franchise gives you flexibility with this plan. You are not forced to go with the above plan. They will fit the plan to you. This means there will be franchisees who will be happy enough just staying with one van.

I't’s important to find the franchise model which best suits your skill set and ambitions.

Areas to check:

• The obvious downside of a pool business is the seasonality, so you need to clarify what happens over winter?

• What does Poolwerx suggest you do during the quiet months?

• Territory size, are there limits to your growth, or can you keep expanding?

• Training, what’s covered, how long is it, is it on site or on line?

• Ongoing skills development for the franchisees. Retail requires a different set of skills to the ‘man in a van’, so how is that dealt with?

• What ongoing support is provided?

• What’s included in the total costs?

And of course, have the numbers checked out before you commit buy with a Pre-purchase Review. This is one of the most important elements of your due diligence. You need to be sure the numbers stack up. You will be making a significant investment so you want to be sure of the financial position.

Let me know if you need a hand.

Peter

Existing or Greenfield Franchise?

"Should I buy an existing franchise, or a ‘greenfield’ site?"

If you’re thinking of buying a franchise, you’re likely to come across this question at some point. There are arguments for both, so we should consider them.

Of course, some of these factors may or may not apply, depending on the business.

Existing business

• Already up and running

• Has a customer base

• Has an income stream

• Likely has a marketing database of prospects

• Has a presence in the local area

• Has plant and equipment

• Has fixtures and fitout

• Existing staff

Greenfield site

• Starting from scratch

• No customer base

• No income stream

• No marketing database

• No presence in local area

• Brand new plant and equipment

• Brand new fixtures and fitout

• No staff

In most cases, a greenfield site will cost less than an existing business, due to the factors listed above.

So, why do it?

So, the question becomes, why would anyone want a greenfield site?

• An untapped opportunity

• Blank canvas – it’s yours to create

• Opportunity to build business value

• Lower entry price

• For those who back themselves 

Questions to ask the franchisor

If you’re interested in getting started in a greenfield site, there are some questions you should ask the franchisor, regarding how they will help you get up and running.

• How will you help me get going – FAST!

• What proven strategies do you have in place for greenfield sites? e.g. pre-launch promotions, etc?

• How have other greenfield sites performed? How long did it take them to breakeven?

• Do your systems specifically cater for start up situations and greenfield sites?

• What experience do you have in guiding and mentoring new franchisees in greenfield sites?

We’re quite comfortable working with new business owners who are starting their business ventures in greenfield sites. In fact, the majority of our clients started in greenfield sites.

But whatever you do, please be sure to get professional advice before you dive in. Even if the entry cost is lower, this is still a big commitment, both financially and emotionally. There are many factors to consider.

The starting point for us is to prepare a Pre-purchase Review. This will assess the financial aspects of the franchise you are considering, even if it’s a greenfield site.

Let me know if you need a hand.

Peter

There are some businesses who are really struggling financially at the moment.

For those business owners, the best advice we can give at the moment is this: you need to get on top of your numbers.

If this is something you’re not comfortable with, follow these steps to get started.

1. Put together a cashflow forecast for the next 4 weeks.

   • That means, estimating how much cash you think you’ll be getting in each week, for the next 4 weeks.

2. Next, estimate how much you think you’ll be paying out each week for the next 4 weeks.

3. Do this for each week, not just the total for the 4 weeks all thrown in together.

   • That means, Week 1: Money In, less Money Out, how much is left.

   • Then, Week 2: Money In, less Money Out, how much is left, etc.

4. Next, see what it looks like (i.e how bad is it?)

5. For most people, their biggest concern is getting enough cash in to cover the bills.

6.  So, make a list of all the bills you owe, including the Tax Office and Super.

7. List them on one page. If using software, make sure it’s up to date then review the Total Payables report.

8. Then, contact all of your suppliers, including your banks and landlord.

9. Communicate with them. Let them know what’s going on. If things are bad, tell them. Or if you can see it turning around, let them know that too.

10. Think carefully and set a plan.

Remember, communication is key in these tough times. The temptation is to bury your head in the sand and pretend things aren’t that bad.

This is not a good strategy.

Be brave and be bold.

Be strong and look your business straight in the eyes. See it for what it is.

Then think carefully about your next step. Set that plan and put it into action.

Let me know if you need a hand, or want someone to hold you accountable to the plan you have set.

Peter

The power of a shared goal

This is something incredibly powerful about working towards a goal with other people.

It could be just one other, or a group of people.

Some kind of magic starts to happen.

A momentum starts to build.

It becomes some kind of force.

Which ends up being irresistible.

There is a joy and excitement which is generated throughout the journey.

In fact, this tingling of anticipation and excitement is almost more exhilarating than the actual achievement of the goal.

When the goal, or target is actually reached, it’s a different feeling.

It’s a sense of accomplishment.

Of achievement. Of self satisfaction.

Of pride. A reassurance in oneself.

Another brick of self-confidence.

In fact, it’s really important.

And sharing this journey with others, who are working alongside you, toward the same goal, adds an extra element of delight.

A special bond is built.

And a richness to the relationship is created which otherwise could not be there.