IT AND TELECOM ~

IT has become an integral part of our lives, both for business and leisure, reflected by
the government's plan for a national broadband program. So what does a franchise
proposition offer? Domini Stuart reports.
t's not so long since phones had dials and computers were for big able to negotiate change, pinpoint opportunities and act quickly

I business only. Today. many homes have wireless networks serving

two or more computers, while even small businesses are process­
ing enough data to warrant a server-based system. There's also
been a huge shift towards mobile technology - we want to be able
to access information, stay in contact and be entertained any time,
to provide franchisees with the information and support they
need to stay on top of their game.

Gee Whizz
• Operating since 1993, started franchising in 2005
anywhere. We want our equipment and our data to be protected and • Now operating five stores in the Hunter area and three
secure. And, as we grow increasingly dependent on technology, we in Sydney.
don't just expect our phones and computers to work, we need them • Plans to open another nine stores in Australia over the next
to work. Most of us can't imagine functioning without them. one to two years and to start expanding internationally.
The speed at which both technology
and customer expectations move We're finding that Alan Gee, CEO
and change has been the business customers are Our aim is to provide everything our customers
downfall of businesses large increasingly seeing the value in could want in a comfortable and friendly

and small. At the same

time, the demand shows
working with technology specialists environment and for them to feel confident

that they're in safe hands.

no sign of abating; there is

in order to maximise their investment There's not one area of IT we don't cover.
huge potential for IT and in technology rather than simply We build comp,lters and we're a warranty and
telecom franchises which are 'buying the box' authorised repair centre for all brands and

SEPTEMBER/OCTOBER 2009 FRANCHISING

 80 IT AND TELECOM

all the time and the latest technical information is always

available on our website. We're also continuously in touch with
our franchisees and bi-annual conferences provide a chance to
thrash out latest issues so everyone is always up to speed.

Computer Solutions Sales and Service

models. We also offer everything from web design, development
and content management to database platform and migration.
Our customers have the security of knowing that we've been
around for a long time and have built a solid reputation. All of our
computers come with a standard three-year warranty and we
service everything we sell.
We're also very price-competitive as we deal directly with the
importer, though one lesson we learned early on is that price isn't
everything. People want to know they're getting the very best
product, so that's what we stock now.
People expect us to be looking for technicians as franchisees
but I generally prefer people who don't have a technical
background; they're less likely to have preconceived ideas about
how a shop should run. We're very much customer focused ­
every aspect of our stores has been designed to make customers
feel welcome, from the colour scheme to the layout. We also look
for franchisees who are customer service orientated, who can
work the showroom floor and build a rapport with customers.
Each franchisee then brings on a technician we have trained ­
each store specialises in a particular area of the business and
we share all of our expertise. Our technicians update each other
• Tony and Linda Bristow started the franchise in 2004
• Now operating six franchisees in Australia and one in New
Zealand
• Plans to establish a network of franchisees across Australia
and New Zealand focusing on the small to medium
business market
Paul Andersen, director and CEO
Our target market may come to us with a specific request when
they are really looking for a business solution. For instance, they
may ask for a server when other products and services would
better meet their need for improved productivity, data protection
or security. Our franchisees help their customers to 'Identify the
real issue and then provide a well-researched, holistic solution.
While domestic consumers are still heavily price-driven, we're
finding that business customers are increasingly seeing the value
in working with technology specialists in order to maximise their
investment in technology rather than simply 'buying the box'
The ideal Computer Solutions franchisee has good-to-strong
IT technical skills but also really cares about his or her
customers. We excel in providing systems, training and support
which enable someone who meets these criteria but is not as
strong in business or marketing to develop a successful
operation. While we provide recommendations in terms of
delivery models, suppliers, pricing, products and services we
don't dictate, so individual businesses inevitably have a flavour
reflecting the franchisee's personality, skill set and interests.
We communicate with customers and potential customers in
traditional ways ... canvassing, telemarketing, direct mail, referral
programs and so on ... but we also encourage our franchisees to
meet regularly with their customers over coffee or in networking
situations where they can really listen to their problems and
concerns.
Over the next 12 months we shall be focusing on weeding
) Story continues on PAGE 8J

Mentoring franchisees
Managing director Mick Davey and general manager
Elizabeth Tinoai, the founders of Supergeek.com.au
mobile computer repair services based in Brisbane,
recognised that as successful business owners and
franchisors they needed 10 n01 only create strong
foundations for the franchise offering, but that they
had to be prepared to refine their business model in
order to ensure both short-term franchisee survival
and longer term business value.
The aim of Supergeek was to provide computer
experts in targeted geographica/locations who
could perform the required software repairs but who
also possessed lhe ability to fix hardware on-site.
Last year the company enlisted the combined
professional expertise of Corporate Solutions (Aust)
and Business Result Accountants to help with fran­
chisee development, providing the desired guidance,
business coaching, accounting and financial expertise.
Supergeek franchisee owners David Pellowe,
Wayne Bruce and Ian Andrews have all experi­
enced SUbstantial benefits from working closely
with the accountants and business coaches
provided by Corporate Solutions and Business
Result Accountants.
Pellowe now owns two franchises in QueenSland
and has seen an increase in his bottom line after
learning how to manage his staff more efficiently;
Bruce increased his income by almost 100 per cent;
and Andrews has concen1rated on service rather
1han back office systems, creating time for his family.
Now, in addilion to the technical and operational
training provided by Supergeek, every new franchisee
is allocated a business coach and receives one-on­
one support for the first months of their business life.
The end result is franchisees better equipped to
succeed, more effectively managing the pressures of
lhe modern day business climate and more likely to
be still with the franchise group for the long haul.

FRANCHISING SEPTEMBER/OCTOBER 2009

 IT AND TELECOM []I]

) Stury continuer! from A,E DO Our business is different from most franchises in that it's more
through inquires and selecting the right prospects - the people like a vending model - a passive investment. It can be a full
that best meet our business ethos and ethics. While predicting time job for someone who invests in four or five but one kiosk
the future is not our business, we are aiming to have three or four involves just three or four hours' work a week. Even that's
franchisees join our franchise network each year. optional because you can opt to have us do all of the service
and maintenance for you. Franchisees don't need any technical
Hi Speed Internet Kiosks skills - we have students, retirees and people who were burned
• Operating since 2004, franchising since late 2007 by the stock market and looking for a different type of
• 90 kiosks in 70 locations, 35 franchised investment. 60 per cent of our current franchisees don't go
• Aiming for at least 130 installed locations across Australia anywhere near the business; at the end of every month we
by the end of the next financial year and to open in New simply bank the takings, take out the costs and direct deposit
Zealand early next year. their return. All they have to do is organise their insurance and
accounting at the end of the year.
Stephen Burns, general manager of marketing and commercial
We were one of the first multi-seat kiosks to operate in Australia The Computer Market
and we believe we're now the largest. We're generally located in • Started franchising 2004.
major shopping centres, with two kiosks in some of the bigger • Currently 13 stores in Oueensland
ones. • Goal is to have 60 stores around Australia
Our kiosks provide exceptionally high internet speeds and we
will soon be adding wireless services, colour printing, faxing and John Ferrett, co-founder with Kurt Kratzmann
scanning services. The kiosks range in size Our business is selling ex-government computers
from a three-seat model, which costs Our business is for half or a third the price of a new one ­
around $20,000 fully installed; most different from most franchises in we've been doing that successfully for 12
franchisees choose between three that it's more like a vending model - years',Our biggest markets are people
and 12 seats, a passive investment. It can be a full needing a second or third computer In
The business grew out of " "b f
t
arne h" t I the home and businesses that just
tourism - the need for transient )0 or someone W 0 !nves s n want to run everyday software.
people to use the internet. Now four or five but one kiosk People come to us because they
we also attract many of the eight to involves just three or four don't need the latest and greatest in
10 million Australians who don't have hours' work a week computers but they do want security. They
high speed broadband at home. In the like buying from a proper computer store with
shopping centres, most of the people who work there use a technicians they can talk to, getting reliable advice and, of
kiosk, including some of the business owners. At least 150,000 course, a good warranty,
people use us on average every month and that number is We physically re-image every computer so it's brand new as
growing fast. ) Story continues on CE 66

A profitable franchise
uter opportunity that's just IT.
Ihecomputermarket.com
~ The only franchised marketer of ex-Government and ex-lease computers to sell
exclusively from a shopfront (as opposed to selling stock on-line, sight unseen!)
~ Computers professionally cleaned and refurbished
~ Now the largest computer specialist in Australia with 13 stores Queensland wide
~ Direct access to suppliers so you retain independence

~ No IT training necessary; we have comprehensive training in all aspects

of running your own business

~ Relatively low establishment costs; low royalties.

For more information on The Computer Market, its products and services,

and to register interest in franchising with us,

visit ~ thecomputermarket.com or call John Ferrett phone \it 3256 2511

SEPTEMBER/OCTOBER 2009 FRANCHISING

00 IT AND TELECOM

StDrv contirru~rt from AI: ,

far as the software is concerned with all available updates and
an anti-virus package. In terms of quality, the research has
already been done - government departments know what
they're buying.
We started franchising when the business had expanded to
three stores. We don't put anyone into a store unless we are
100 per cent sure he or she can do the job - we were told from
the start that you don't sell franchises, you grant them. All of
our current franchisees either started out as employees or came
to us by word of mouth and, with a mix of single, double and
multi-store franchisees, just four franchisees have 13 stores Telcoinabox
between them. • Started franchising 2002.
Slow, organic growth is nice but, now that we're ready to • 70 franchises in Australia, 10 across the UK and
expand into other states, we're starting to focus on more active New Zealand.
recruiting. Our research has shown that businesses with similar­ • Over the next five years plan to launch into three new
sized territories and a similar number of stores in Queensland countries and achieve international retail turnover of over
support around 60 stores across Australia so we're aiming for $200 million.
the same.
We look for people with business rrther than technical skills ­ Damian Kay, founder and managing director
good communication, the ability to rdlate to customers and, Being a telecommunications reseller generally requires intimate
though we know it can be hard to judge, honesty and integrity. knowledge, experience, contacts and carrier relationships as well
We're also looking to form sound, long-term relationships with as approximately $200,000 to set up. In 2002 we had an idea
our franchisees. Franchising is like a commercial marriage so it for breaking down these barriers to entry and decided early on
helps if people are like minded to some extent. ) Storr continues on r

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FRANCHISING SEPTEMBER/OCTOBER 2009

00 IT AND TELECOM

) Story continued from P GE IS6 Computer Troubleshooters Global

The that a franchised model was the way to was purchased by Merrymeeting

Prqiler
go but one with a difference. Instead of a
common brand and specific territories we
offer a proven business system that is
Inc., an American investment
company which owns or controls six
franchise companies with more than
not limited by geographical bounds so 1700 franchised locations, over 25
income is also not limited. We also offer per cent of which are outside the US.
sensational training and support and
regularly add new products and services. Nick Roche, national director
We are definitely not looking for people We grew to be Australia's largest IT
who want to buy a job but those who are service franchise by focusing on small
more entrepreneurial. As we don't really business. Small business customers
look like a typical franchise we tend to realise that, without good IT support,
attract this type of franchisee by default their business would often be dead in the
We also require that they are ready to water. They see us as their trusted IT
build a business, have the support of advisor, there not just to fix problems but
their friends and family, have sales to help them protect their business and
experience and are hungry for success. get the most out of their IT.
Having a more one-on-one relationship We have found that the potential
with their customers is a core offering of market for a credible franchise network
our franchisees and one which offering on-site computer services is
differentiates them from the competition. huge. Almost all small businesses and
It's all about the full service that business home offices use computers and depend
customers especially require - our on them to be working properly. They do
franchisees will go out and find the not have the skills, the time or the
best solution for their desire to do their own computer
customers even if they Instead of a service, repair and upgrades
don't supply it to them. common brand and and that puts us right in
As a result, most of specific territories we the middle of one of the
our franchisees grow fastest growing
entirely from referrals
offer a proven business industries in the world.
- as we know, that's
system that is not A typical franchisee is
the best business to limited by geographical an experienced IT-savvy
get as it is loyal and bounds so income is professional with 10 to 20
cheap to acquire. also not limited years' experience in the
Consumers are looking more corporate world who is looking
than ever to save money - they want a for a challenging small business as an
better service at a value price and it is the alternative for lifestyle, financial and
sweet spot of our franchisees. They are personal development reasons. The other
able to save businesses and consumers key part of the equation is commitment
between 20 and 30 per cent on their to make the business work; 100 per cent
Franchisors share telephone costs at the same time as investment in terms of time and energy.
offering a far superior service. Technology is Some franchisees operate from home,
their passion the key but this is less important than the handling most of the technical work
Pri~e and service framework. themselves, while some start with a
service centre, managing technical staff
Computer Troubleshooters who handle the day-to-day work. In
• Started franchising 1997 reality most start out with a home-based
Get your copy
• Over 80 franchisees in Australia and operation then expand into a service
almost 500 across 27 countries centre with a more managerial role as the
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worldwide business grows. With Computer

January/February
• Aim to establish over 1000 franchise Troubleshooters, all franchisees have
edItion ofF.ranchi{i!Jf:
outlets globally in the next two access to the scale and experience of an
years. In 2008 the majority of established market leader. •

FRANCHISING SEPTEMBER/OCTOBER 2009