6 minute read
Expert Advice: Home Improvement Franchises Using Technology for Success
hoMe iMproVeMent franChises using teChnology for suCCess
erin smith | general manager | liFesiZe PlANs
australians are known to be the most hands on renovators in the world, obsessed with our homes, kitchens and outdoor spaces.
This shows in the Home Improvement and Do-It-Yourself sector, with the growth unstoppable despite the COVID-19 crisis crippling many other industries. The government incentives have rendered this industry one of the most buoyant in a difficult economy. Lockdown! and look what happened, everyone went to Bunnings for their supplies for their renovations they have put off, but now have the time (and in some cases need) to do. Our fascination with our homes, which for many are now also their workspaces, means the walls we live in are becoming more challenged to deliver more in function, flow and flexibility. The Construction sector in Australia is said to be worth $360 billion and the Home Improvement sector is said to worth more than $31billion, so our TV and subscription channels are flooded with exciting examples of shows like The Block, and globally Angel and Dick Strawbridge’s Escape to the Chateau: DIY series in France, and Joanna and Chip Gaines from Fixer Upper in the USA, who share their DIY trials and adventures of having a go at making their dream home. These shows make it all look easy as they swing their sledgehammers on ‘Demo day’, and get their excavators and scissor lifts out, and then place some cushions on the couch to finish it all off. You don’t always see the full story as this is TV. I don’t recall ever seeing them apply for council or construction permits? These scenes make renovations look simplistic from our couch. But beware! As an enthusiast, a poor renovation could cost you more than you imagined when you set out. Especially if poor waterproofing and drainage decisions are made.
If you are an enthusiast and considering buying or establishing a Home Improvement franchise there are a few key factors that will be pertinent to your success as an operator. Let’s look at the ones most relevant to success when owning a home improvement business.
customers - Who are they?
There are lots of customers, just look at review sites like The RenoClub on Facebook where there are hundreds of questions people ask daily who need help, but they aren’t going to pay for it. For your success, customers need to have a relevant budget for their dream project. Define them and have a persona so all in your business know what a good customer looks like. What is their budget? Scoping your customers’ budget is a sensitive question and needs to be handled tactfully. Determine whether they want an ‘estimate’ or an ‘actual quote’ to sign a contract. An estimate will be quick based on a per sqm finish rate will help ascertain if your customer has any reality on build cost. Each week I see customers who do not understand why a single level acreage home costs more than a double storey home even though it is the same size. Your customer stream? If you are buying a home improvement franchise having help with your customer leads and management of them is critical. What technology platforms and skilled marketing tools is the franchisor supplying to you? Marketing is not just a website it is the ability to attract, interest and convert customers ideally online.
use technology for design
The use of Technology continues to grow in renovations. This allows both your team and the customer to be visually on the same page and makes quoting easier as well. Technology for ‘Design Management’ is freely available with design platforms like Lucid chart and Sketch-up to name a few where you can draw out and design a renovation plan. These platforms are little time to learn and provide a very professional and low cost approach to designing the layout. The benefit is you can talk all you like, draw it and it becomes a visual collaborative tool and you and your customer being on the same page. As many people want their own custom design, whether it be a new build or home improvement, businesses such as Lifesize plans in Sydney and WA are rapidly growing. This is becoming the new way to deliver a professional customer and design experience where you can walk the plan to actual 1:1 scale and identify and iron out potential issues between the parties leading to a smoother build experience. Customers lack skill, experience and confidence in trying to understand scale and space. This is a learnt skill and today customers want functional multi-purposed spaces as well as open spaces yet they don’t understand what that looks like and how it flows together. Taking the proposed plan to an actual scale will quickly sort that out and help your customer realise exactly what they are getting in their new design layout.
Your current skills?
If you study shows like The Block or successful renovation teams, many of the winners are already builders, trades or even undiscovered designers, so they have a skill set and some experience understanding where they are qualified to deliver on these projects, and fit in the process order, and benefit by using their free labour to make money. If you are considering a franchise then a background in one of these will definitely be a strong benefit, and best you school up and complete a base level course, as major mistakes will be at your business cost.
technology for your supply chain
Making a decision on how much you allow your customers to supply will be critical to the speed and profit of your home business. Allowing customers to roam all over the world and have products supplied that may not be fit for Australian standards should be a hard no. With so many businesses opening in this space you can share their sites with customers, order online and build a great supply chain with your partners. “the use of technology continues to grow in renovations. this allows both your team and the customer to be visually on the same page and makes quoting easier as well. ”
Look for the up-and-coming entrepreneurs, for example some of my favourites are The Blue Space, Tile Cloud and ABI Tap Ware, who have been deliberate in their strategies to use their platforms as their virtual showroom online for the bathroom space. We have yet to see kitchens evolve to this degree past the flat pack philosophy. The key to success if you are considering a Home Improvement Franchise is customer engagement, understanding their wants, their budget and delivering the outcome, and underpinning all of this is using technology to get the plans and your ideas across. The Home Improvement sector is a trend I don’t see slowing anytime soon, and there is significant satisfaction to be gained helping others live better in their dream home or dream spaces.
