Friday, May 12, 2006

Expanding The Business

Two Maids & A Mop is at a very important juncture. We can go in a lot of different directions. The most common method to open mass outlets is to franchise the business. In my opinion, franchising is not the way to go.

Paul Orfalea, the owner of Kinko's, sums up the idea of franchising.

"Franchising sets up an adversarial relationship. The franchisee has an expectation that the franchiser will make him successful. In a franchise relationship, the store manager is not a full partner."

What he's saying is that the franchise owner doesn't get to utilize his entrepreneurial skills fully. The franchiser sets policies and procedures that each franchisee must follow. The franchiser is responsible for making the franchise owner successful. This limits his true entrepreneurial skills.

If we were a franchise, we would have never devised the pay for performance program. We would have never created a customer advisory board. And we would have never been allowed to open other locations.

Each idea that we implement is born from our true entrepreneurial spirit. Our managers own 20% of their location. They are partners. THEY make the business successful, not me.

Partnering with other entrepreneurs is how we plan to expand in the future. We're not franchising or licensing. The partnership model for our expansion will be posted on our website in the next few weeks. It will be easy to understand, easy to join, and exciting to watch. Partnerships stakes will vary from 20% - 60%.

Every major cleaning company chain franchises their model. Like everything else, we're not going to do the same thing as everybody else. Stick around and watch David beat Goliath.

No comments:

Post a Comment