Expert Advice: What the Home Improvement Boom Means for Franchise Businesses

what the hoMe iMproVeMent BooM Means for franChise Businesses

ceo and Founder of poolwerx, John o’brien, shares why many trends that have surfaced over the last eighteen months will continue, and what it means to businesses.

Living in a COVID world for 18 months has changed our attitudes to making travel plans. Not only has it meant no international travel, but it’s also created an environment of apprehension for domestic travel given the new wave of COVID cases around the country, with many people nervous about committing to going anywhere beyond our front door. Now, when we are weighing up either a holiday or a renovation, the latter seems the safer investment.

Home improvements have become a key focus for many Australian families, with many choosing to invest in renovations and home comforts. Maybe it’s an extra bedroom or bathroom, an upgraded kitchen “home improvements have become a key focus for many australian families, with many choosing to invest in renovations and home comforts.”

John o’brien | Founder and australian ceo | POOlWerx

for entertaining, or a pool for family fun. Australians are spending a record billion dollars a month on renovations in an absolute boom partly fuelled by COVID government stimulus and by continued lockdowns nationwide. In fact, the Swimming Pool and Spa Association of Australia (SPASA) reported the demand for new pools jumped 30 per cent YOY. The home cocooning trend shows no signs of waning and as a result we’re continuing to see a surge in demand for home services. The broader pool and home improvement industry who were the beneficiaries of this trend throughout 2020 are still reaping the rewards in 2021. From our experience, the Poolwerx brand and what we stand for – maintaining healthy pools for families and friends to create lifelong backyard memories – is really resonating with clients in the current climate.

COVID has delivered multiple challenges for businesses in many ways. However, as we adapt to a BAU – Business as unusual with a new way of living, greater time working from home and even staycations, the business consumer supply chain is moving and fuelling local spend. National unemployment rate hit its lowest level in a decade at 4.9% last month and, despite the testing retail environment, many companies are reporting EOFY success.

“as a business we have received a record number of franchise inquiries from those craving a new start, wanting to be their own boss and to invest in a recession-resistant industry.”

and backyards, generating a home servicing industry boom and proving that this is a recession-resistant industry.

riding the Wave of new opportunities

The pandemic and inevitable lockdowns have forced many people to examine their careers and it’s estimated 3 million Australians will consider a post-pandemic career change. People have become accustomed to the benefits of working at home - spending more time with the family, greater flexibility around working hours and no commute. For many, returning to the workplace is a daunting prospect, not to mention the job uncertainty now faced in many industries. As a business we have received a record number of franchise inquiries from those craving a new start, wanting to be their own boss and to invest in a recession-resistant industry. We have never seen so many highly qualified franchise partner enquiries in our 29-year history. Mid-tier business professionals are understanding the opportunities that are presented by starting their own franchise journey. Maybe their personal savings have increased, or they have greater equity in their homes and money to spend. A major benefit of joining the Poolwerx network is the different options available to join - such as buying an existing business, converting an existing business or becoming a mobile franchise partner. On the other side, it seems the pandemic has brought forward the decision for independent pool store owners to sell. For many, without the support of a strong network, the world has just become a bit too uncertain for many small businesses and their nest eggs are now more vulnerable. This is where we can step in and help with succession planning. Today’s average franchise partner ranges from first time business owners, right up to experienced entrepreneurs who manage multiple territories with multi-milliondollar turnovers. We see this latter trend continuing, and expect an increase in the number of experienced business people entering franchising as it provides the ability for an improved work/life balance while still building a successful business with the backing of our established support network. In New Zealand, Garth Parker joined Poolwerx as our first master franchise partner after leaving his job as executive at Nando’s NZ. Garth’s appointment came off the back of Poolwerx’ success through COVID-19, where New Zealand sales jumped 50 per cent.

supporting Franchise partners through every challenge

Demand for home improvement, renovation, gardening and pool servicing has increased with many businesses extending their offerings to meet the demand. From our own experience, our DIY options continue to be in high demand for clients riding the renovation wave. We have been able to quickly extend our offering with new services, including home delivery and test and deliver, to support those affected by Government restrictions. Our extended range of contact-free services are proving popular across all locations and an excellent example of the importance of business agility in the face of adversity. Throughout the last 18 months, we have increased support mechanisms, additional training, new product offerings and enhancing systems and processes to help franchise partners. Our diversified approach and business model, working across retail, servicing and commercial, provides partners with multiple revenue streams which can safeguard their business against troughs within the different sectors. Diversification has been key to success as we recently announced our most successful year in our history turnover 10% over FY21 forecast.

evolution is Key

In a cascade effect, a higher number of partners in the network coupled with our commitment to innovation and entrepreneurial culture has meant a restructure for the Poolwerx Support Team, including our Senior Leadership Team. As a result, we created a number of new roles including Chief Innovation and Technology officers, a Chief People, Performance and Culture Officer, Chief Commercial Officer and are currently looking for a Chief of Franchise Development. Since our inception, a key part of our ongoing growth is to constantly evolve and develop new innovations and initiatives.