Multi-Unit Franchisee Magazine Issue III, 2011 | Page 22

“No matter what the brand or business, I want my stores to be reflective of the market they’re serving. Diversity just makes good business sense.” was probably highly overleveraged for several years leading right into the recession. He’s had to work hard to keep the bills paid, and doesn’t mind in the least to say that sometimes that took some skillful juggling—at least until this year. Today he’s pretty much debt-free, has built some cash flow, and things are much better. But he’s still going full speed ahead with new ventures, both in business and in life. That’s the Thomas way. He wouldn’t have it any other. MANAGEMENT Business philosophy: I talk with my employees about where they want to go, where they want to be in five years, and what it will take to achieve that. I realize that many of my employees want to be Indians, not Chiefs, and that’s fine. Regardless, I give them all the numbers. I share everything. The more they know about making money, the better they’ll run my business. And if someday my best employees leave and start their own business, that’s great. Would you say you are in the franchising, real estate, or customer service business? Why? I’m in the people business. Great service and operations are the backbone. Also, I’m very respectful of my customers’ time. Whether it’s haircuts, smoothies, or carwashes, no one likes to wait. What gets you out of bed in the morning? Last year, the stress of knowing whether or not my checking account went negative. This year, having to get my kids on the bus. What’s your passion in business? To chart my own course. To be different. To be out of the box and try things that others would never even contemplate. Management method or style: I believe strongly in diversity. While some men might like a store filled with bombshell blondes, I think that’s bad for business. I want someone black, someone white, gay, straight, Hispanic, Asian, Persian, young, old, fat, and skinny. No matter what the brand or business, I want my stores to be reflective of the market they’re serving. Diversity just makes good business sense. Greatest challenge: Up until 2011 my biggest challenge was simply juggling money to keep from bouncing any checks. Yes, I swapped money from one business to the other. I robbed from Peter to pay Paul. For years, my stores 20 Multi-Unit Franchisee Is s ue III, 2011 “had to” grow at 20 percent just for me to be able to make the debt service. Fortunately they did, and then some. As of today, most all my debts have either matured or been paid off early. And now that I don’t have those headaches, I’m not too stressed. How close are you to operations? Very. I issue paychecks weekly. And with each check they get a newsletter. One side of that newsletter is stories, guidance, concerns, incentives, upcoming events, etc. The other side is the store rankings. I share everything. And I sort it from best to worst. Everyone knows where they stand, and stores and employees who are lagging tend to get fixed or fired rather quickly. No one likes to see their name at the bottom of the list in any category. How do others describe you? Lots of energy, 99 mph. How do you hire and fire? We hire quickly (sometimes on the spot). Why? Because the very best applicants land a job in one day. If we don’t hire them on the spot, a competitor will. So we have to be a quick judge of character. Oh, and we fire just as quickly: 90 percent of all our firings take place the first week. But if they make it past that, they stay on for a long time. We have very, very low turnover. I think it’s my job to keep the employees motivated and productive. We pay “above par,” but keeping employees takes more than just money. It takes mutual respect, motivation, etc. How do you train and retain? Being that I don’t know how to cut hair, make a smoothie, or wax a car, I leave training to my GMs. How do you deal with problem employees? We fire them as quickly as possible. And then we help them get a job with our competitors.