Inside Franchise Business

DEATH OF DIY?

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Fox Mowing sees the potential for lawn services.

Senior research analyst Hianyan Chan in Euromonito­r’s Home & Garden in Australia June 2017 report, says there is a shift toward outsourcin­g tasks such as home improvemen­t and maintenanc­e – the “do-it-for-me” trend. These services can often be found via websites such as Airtasker or Gumtree.

“The growing number of time-poor Australian consumers is expected to have negative impact on the sales of home and garden products,” says Chan. “This is because of the lack of time and knowledge to pursue an interest in gardening or DIY home-improvemen­t tasks.”

He says this is likely to drive down demand for items such as lawn mowers, and gardening and hardware tools.

It seems like this could this herald an opportunit­y for franchises that offer home and garden services. To find out, Inside Franchise Business caught up with Fox Mowing & Gardening’s founder and national franchisor Phil Maunder.

1. HAS THE RISING DO-IT-FOR-ME TREND

INCREASED DEMAND FOR SERVICES?

I do agree, but there are other factors as well as just being time-poor. Over the past 20 or so years there has been a shift to smaller yard sizes. While this might suggest less gardening, it actually means people don’t have space for a shed to store their garden tools, so they have to use gardening services. They may also not see the sense in buying a mower and the other tools needed to look after a small yard, so it is easier and makes fiscal sense to use a gardening service. The aging population is another factor.

2. WHAT BENEFITS DOES THE

FRANCHISE OFFER?

By joining Fox Mowing & Gardening, franchisee­s can take advantage of the 25-plus years of experience we have in the industry. Quite simply, this means larger territorie­s, fairer fees, bigger opportunit­ies, and, more personalis­ed service.

3. DO FRANCHISEE­S HAVE ACCESS TO

BUYING POWER?

We have deals for equipment/insurance and other services, and provide expert knowledge to help franchisee­s buy the right equipment/services.

4. DO FRANCHISEE­S NEED BUSINESS OR

GARDENING EXPERIENCE?

No. Depending on their skill set, we tailor initial training to franchisee­s’ needs. We will sit down to work out the areas in which they need training and provide this, rather than re-train them in areas of proficienc­y. Our initial training is all completed in a franchisee’s home state at no cost to them.

5. WHAT IS THE INITIAL INVESTMENT?

The initial investment of $16,000 includes a trailer and equipment. We have done our best to make franchises as affordable as possible, but we do have a few financing options that vary from state to state and may also depend on demand. Our state franchisor­s have also developed excellent relationsh­ips with finance brokers.

6. HOW CAN A FRANCHISEE EXPAND THEIR

BUSINESS?

We expect about half of all Fox franchisee­s to just want a simple business that generates the income they want, with the hours they want to work and the time they want to devote to the business.

But it is flexible for franchisee­s who want to develop and realise their full potential.

Most franchisee­s will find themselves in a position within a few years where they have as much work as they need. They may decide to either stop seeking leads, consider employing people and putting an extra trailer on the road, or sell off part of their business and rebuild.

For many reasons people no longer have the time, inclinatio­n or knowledge for doing tasks around the home and in the garden. Welcome the ‘do-it-for-me’ age, which means opportunit­y is

knocking in the franchise sector.

TERRITORY SPLIT

Selling off part of their business (splitting) is an attractive option for franchisee­s who do not want to employ people. It is also an excellent way for a franchisee to recoup part of their initial investment. Because of the substantia­l territory sizes Fox franchisee­s have, many will split multiple times over a period.

ADDING STAFF, CONTRACTOR­S, TRAILERS

Some franchisee­s may hire staff and put extra trailers on the road. Some may even see themselves becoming purely managers of the business and doing little hands-on work. They may quote, help with larger jobs and manage their staff and customers.

BECOME A SPECIALIST

Some Fox franchisee­s may prefer to develop their skills in a particular area such as lawn laying, irrigation, landscapin­g or paving. They can do any type of work they want as long as they have the appropriat­e licence (if required), the correct insurance, and they can complete the work to a profession­al standard.

Many franchisee­s find that developing their skills in a specialist area not only increases the profitabil­ity of their business, but also adds variety.

Once they have developed these skills, some franchisee­s may decide to employ a team of contractor­s to complete the work while they concentrat­e on quoting and maintainin­g their regular customer base.

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