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franchise.co.nz – PUTTING PEOPLE IN BUSINESS
ith a degree of optimism
he described as “nearly
stupid” Neil White bought a Snap
Fitness gym in New Plymouth.
“There is no doubt it was
performing poorly in the absence
of a hands-on franchisee,” he
says, “the whole thing was a bit
of a disaster from a potential
new owner’s perspective. I’m
obstinate and stubborn and I had
a vision of what it was going to
be like – but in reality, I had no
idea what I was doing!
“The price reflected the
commercial reality, so I went
ahead and quickly found far
more was going on than I knew
about. All the staff left very
quickly, leaving me sitting in the
wreckage of a business. I had two priorities – refit and grow the client
database. What assisted me greatly was bringing on board Hayden Cargo
and the team at Franchise Accountants. That made a big difference and
was definitely a factor in the success of the business.”
Five years on, Neil, a former Metropolitan Police Officer who had spent a
couple of years sidelined by a bad accident, has bounced back. So much
so, that he has bought another Snap Fitness gym in Cambridge. “After
my accident I took a serious interest in wellness training and rehab,” he
explains. “That route petered out and I decided franchised gyms were a
better bet – someone to hold your hand in business.
“Gym businesses do tend to be fickle as every one of them is competing
for clients and changing their special offers every week,” explains Neil.
“Some members jump between them, taking the best offer every six
months. You have to reckon on losing members every month, and trust
that your marketing activity has attracted fresh clientele to make up the
difference. I achieved the refit and rebuilt the database in New Plymouth,
but initially it was by working 16 hours a day, 6 days a week – I did
everything myself at the beginning because I was the only person I could
rely on to get things done!”
Face to face
Neil doesn’t mind hard work, but he makes no bones about his grasp of
figures. “If you are in business you have to play to your strengths. I don’t
understand the details of the financial side … but I know a man who
does! In my view,” Neil continues, “accountants are in general a little
bit risk averse. I spoke to a couple of them before I engaged Franchise
Accountants, and both of them had suggested ‘don’t go anywhere near
that gym!’
When I met Hayden we had a long chat about what was needed, what
the running costs would be and how to structure the debt. All of this
I grasped broadly – what made a difference was that I was able to sit
down and talk about it in detail, face to face with Hayden. I don’t like
emails as a rule and Franchise Accountants have excelled themselves in
a willingness to be available on the phone, or in person, whenever I have
needed advice or guidance.”
A finger on the pulse
Franchise Accountants are six times winners of Service Provider of
the Year at the Westpac New Zealand Franchise awards. “We think
that demonstrates how closely we have our fingers on the pulse when
it comes to high-performing franchised businesses,” says Hayden.
“Many good entrepreneurs, and I know Neil will agree with me, are not
accountants. They need professional advice delivered in a way they can
understand. The first question any would be franchisee needs to ask is
this: ‘Is the business I’m buying viable, sustainable and profitable?’
“It is not always the case that the answers to those three essential
questions are clear. It is our job to tease out the good, the bad, the ugly
and anything else the figures can reveal. It’s not our job to stifle good
commercial ideas – despite what is often said about accountants,”
Hayden laughs. “We provide the foundation in figures that demonstrate
to entrepreneurial minds whether their ideas can work.”
A very different experience
“After five years operating in New Plymouth,” continues Neil, “Hayden
insisted I was doing well because I was paying tax. It was time to expand,
and in April this year I took over another franchise in Cambridge. It’s
been a very different experience, and not just because I’m wiser. I knew
what I was getting into as a result of the financial forensics applied by
Franchise Accountants. I also had very specific questions, particularly
around leasing.
“Getting the best advice usually involves asking the right questions
and from my experience Franchise Accountants stand out because I’ve
always been able to meet with them and discuss all the options.”
“We are proud to say that many of our clients have praised the clarity
with which we present
figures to them,” says
Hayden. “We have won
multiple franchise awards
for good reason – we
understand franchising and
we have the tools to enable
owners and entrepreneurs
to do what they do
best – grow and run
their business.”
Franchise Accountants
www.franchiseaccountants.co.nz
Contact
Hayden Cargo
0800 555 80 20
hcargo@franchiseaccountants.co.nz
pmorrison@franchiseaccountants.co.nz
Advertiser Info
Neil White: ‘Bringing in
Franchise Accountants made a
big difference’
CALLING
IN THE
BIG GUNS
Buying a Franchise
Following Franchise Accountants’
advice has brought success for multi-
unit gym owner.
Franchise Accountants’
Hayden Cargo and Philip Morrison