RECONNECT
Business philosophy : I open and acquire businesses to operate long term , never to resell . Long-term cash flow always trumps profits from a sale . Always be prepared for tough times by keeping operations lean and keeping debt to a bare minimum . Never do a deal that you have to stretch yourself too much for , or just doesn ’ t feel right .
Management method or style : Focusing on what I do best . Hire people better than myself for the rest .
Greatest challenge : Being content with where I am in life and in business .
How do others describe you ? Optimistic , hardworking , and detail-oriented .
One thing I ’ m looking to do better : I am continuously looking for ways to improve support to our stores and field teams . I have added key leadership positions and they have significantly upgraded our systems and processes .
this year is showing double-digit sales growth in our existing locations ,” says Simon . Greg Thomas , his operating partner in Great Clips and Smoothie King , is a big part of that growth .
“ Greg and I have completely different skills and clearly defined roles ,” says Simon . “ His big outside-of-the-box marketing ideas , paired with his attention to detail and motivation of staff , is getting us great results .”
Simon , a member of the Multi-Unit
Annual revenue : $ 50 million . 2017 goals : At least 40 new stores .
Growth meter : How do you measure your growth ? I don ’ t just look at number of units or revenue . Same store profitability growth is my most important growth meter .
Vision meter : Where do you want to be in 5 years ? 10 years ? I believe we can double the size of our business every 5 years . More brands , more regions , more growth .
How is the economy in your regions affecting you , your employees , your customers ? We have continued to grow despite the economy .
Are you experiencing economic growth in your markets ? Yes .
How do changes in the economy affect the
MANAGEMENT
How I give my team room to innovate and experiment : I hire the right people with the right skills and I don ’ t micro-manage them . If they want to try something new , I ’ ll help them think it through , make sure they have the resources they need , and then I get out of the way .
How close are you to operations ? As I have operating partners in each of the brands , my role these days is more focused on growth strategy , opportunities , and building our infrastructure to support that growth . I keep apprised of operational issues and review all key metrics on a daily basis .
What are the two most important things you rely on from your franchisor ? Marketing and employee training .
What I need from vendors : Most of the vendors are really controlled by our brand partners and they do a great job . They screen and evaluate the contracts and negotiate pricing .
Franchising Conference Advisory Board , says he always has striven for excellence and will continue to do so as he grows — with LSGF providing the foundational support to achieve his goals , whether adding new stores , boosting same store profitability , exploring new brand opportunities , or providing services to multi-unit franchisees . “ LSGF Management executive members Don Noble ( CFO ) and Anne Lalinde ( HR director ) have implemented structure , processes , procedures , and technologies
BOTTOM LINE
way you do business ? We focus on customer retention and change our business to retain customers .
How do you forecast for your business ? We forecast for existing and future growth .
What are the best sources for capital expansion ? For acquisitions owner financing is usually the best , if you can get it . Other sources include the brands ’ preferred lenders and local banks that understand retail .
Experience with private equity , local banks , national banks , other institutions ? Why / why not ? For our line of credit we found Renasant Bank , a regional bank that wanted to partner with us . They had the best combination of service , rates , and flexibility .
What are you doing to take care of your employees ? We offer a full array of benefits including vacation , holiday pay , and insurance . We provide
Have you changed your marketing strategy in response to the economy ? How ? Yes , and we will continue to change based on market conditions .
How is social media affecting your business ? More and more of our marketing budgets have gone toward targeting social media channels .
How do you hire and fire ? I like to hire driven people with career ambitions . People fire themselves .
How do you train and retain ? All the brands provide great training tools . We weave our culture into the materials , making sure our employees are well-trained and understand the expectations .
How do you deal with problem employees ? We have a structured corrective process that will lead either to their improvement or termination .
Fastest way into my doghouse : Not doing what you told me you were going to do .
that anticipate our future expansion while maintaining agility ,” he says .
Partnering with the right brands , the right operational partners , and having the right senior leadership team in place has taken Simon from his beginnings as a single-unit , basement office owner-operator into a top-notch multi-brand operator with the ability to continue growing at a double-digit pace . “ We have a great team , and the future looks very bright ,” he says .
growth opportunities for employees and a very caring and nurturing culture in which employees feel part of a great team .
How are you handling rising employee costs ( payroll , healthcare , etc .)? We have looked at all our expenses and cut from nonessential areas . We work to optimize scheduling to control payroll costs , and we strive to find creative solutions to minimize healthcare increases .
How do you reward / recognize top-performing employees ? We share a lot of information with our staff through emails and newsletters . We recognize top performers and reward them with bonuses , lunches , dinners , contests , events , and trips .
What kind of exit strategy do you have in place ? I love what I am doing and have no plans to exit in the foreseeable future .
74 MULTI-UNIT FRANCHISEE ISSUE III , 2017