Jim Penman is the founder of Jim’s Group, one of the most successful franchises in Australia. Originally started by Jim as a lawn mowing business, the company now has multiple franchise arms, ranging from home maintenance to financial services.
Tip 1 - Choose an unpopular job
According to Jim, when choosing a franchise: ‘I would recommend to anyone to pick the dirtiest, toughest job. There are millions of massage therapists, but if you build fences, there’s weak competition,’ he says.
Tip 2 - Understand everything
Jim’s next best piece of advice is to, ‘Get involved and understand the business physically’. That way, you become intimate with your work, your clients and the way the business is run. Don’t just hire people to run the business – unless you understand every part of it, it will be hard to make improvements and changes.
Tip 3 - Exceed expectations
Jim’s golden rule? ‘Amaze clients with service and exceed expectations. Always turn up on time and return phone calls. When you do a job, do more than is expected. If you’re cleaning and a bed needs doing, do it; if you’re mowing, make sure you remove the grass from pavement cracks; if you’re dog washing, leave doggy treats. The little things deliver that wow factor.’
‘I look around and chat to the client. You have to develop a relationship – keep notes about their kids, think about how you can make this client a raving fan. Give out business cards, including extras so that your fans can spread them around.’
Tip 4 - Don’t sell yourself cheaply
When it comes to charging, Jim says, ‘My biggest mistake early on was that I didn’t charge enough.’ Jim’s advice when quoting, is if 90 percent of your quotes are accepted, increase your prices. If you’re getting 75 percent of your quotes, then either drop your prices or improve your service. People are willing to pay more for good service.’
Tip 5 - Sell even more
Up-selling is the key to any good business. Says Jim: ‘It’s extra work you don’t have to go out and market for’. So, if you are cleaning a house, offer to clean the oven. If you’re mowing the lawn, offer to clean the gutters.
Tip 6 - Be frugal
Watch your costs. Jim says, ‘I still drive a 24-year-old car. I could afford better, but it would be a waste. Put your money into providing a better service, not in displaying your wealth. And whenever you can, ask for a better deal.’
Tip 7 - Be a perfectionist
Jim’s basic approach to his business is that nothing is ever good enough: he’s always looking for ways to improve his business and the service he offers. ‘Every day I think: How could I give a better service? Every business can improve by at least 10 percent.’
‘Years ago, I had a guy who could only mow four lawns a day. I went out with him and found he was doing a whole lot of things wrong – for example, mowing around a tree the wrong way. The way I approach it, even after 20 years, I’m still working on how I can mow around a tree half-a-second faster.’
Tip 8 - Understand the finances
Importantly, Jim says it’s crucial to know your business back to front. ‘Know your profits and costs, know where you are making a profit. I suffered enormously when I started because of a lack of good figures.’
Tip 9 - Demand the best from your staff
Focus on your staff. Jim says if you want to get the best from your staff, ‘Look after them well. Treat your staff like clients.’ Jim advises anyone who is thinking about hiring staff for their franchise to, ‘Give responsibility to staff – and then demand the highest standards from them. That’s the key to growth.’
Tip 10 - Know what you’re good at
Another piece of advice from Jim is to, ‘Stick to your knitting. I learnt the lesson – I tried retail, but was no good. Other people’s businesses always look attractive, but no matter what you do, stick to what you know.’
And most importantly
But above all, says Jim, ‘Put yourself and your family first. Don’t pour too much into the business – get proper exercise, eat properly, get sleep and spend time with the kids.’