NOVEMBER 2015
In this issue: 1. a. R eflecting and Remembering Your Why
b. The Reason You “Sit In The Chair” Defines Your Legacy.
2.
Words of Wisdom & Reading Feature
3.
David & Gina Kluger, Personal Best Vol.
4.
Top Ten Volume Leaders
5.
Personal Best Vol. & Chart Toppers
SUN
THE
6-11. Three part series by Kevin Brown, Assistant Vice President of Marketing, Servpro Industries, Inc.
SERVPRO® of Southern New England and New York
The Reason You “Sit In The Chair” Defines Your Legacy. From the December 2013 SUN Heritage and legacies are similar in concept. Usually, heritage refers to material and economical inheritance, while legacy refers to immaterial and cultural inheritance. Do you have a plan, goal, or objective to pass along either or both for posterity?
Reflecting and Remembering Your Why By Sue Steen, Chief Executive Officer Newsline December 2014
“As we continue to grow and look to the future of SERVPRO®, I am reminded our work is never done. As we look [forward] and set goals for the coming year, we must refocus our vision and remember the “why.” Do you have a clear focus on your why or your goals? If not, take time this holiday season to redefine and refocus your why. What do you value most in your life? Your values define who you are and what you aspire to become—define them with care. Getting caught up in the whirlwind of everyday life is easy, but when we do not have a clear target or why in our lives, we quickly lose that connection to why we do what we do. Setting business goals is very important, but I remind you, setting personal goals is equally important. Make time in your busy schedules to enjoy family and loved ones, not just during the holiday season, but throughout the coming year. Take time this holiday season to reflect, recharge, and refocus”
Material wealth is only a small fraction of your legacy as your true legacy is sharing what you have learned, not just what you have earned, and bequeathing values over valuables. Your legacy, meaning a uniqueness, and heritage are meaningful contributions to your family and/or humanity at large, both materially and culturally. Both qualities can be created and passed on both while living, and after you have departed. Each one of us has a choice regarding our personal lives and business. A SERVPRO® Franchise, for example, may be viewed as just an option for just making a good living and moving on. Some may regard leaving the business as a heritage (material value) to family, employees, or to support charitable causes. The latter are financial and material rewards for building a successful business. However, the latter then also can create a constructive legacy; one that is based on improving the lives of others, through your experience, education, and life’s example; the intangibles that leave lasting positive impressions and a desire to emulate your actions with those they, in turn, work, socialize, or interact with, in their lives. Your legacy encompasses your core beliefs and principles, as your values are not solely measured by accomplishments, wealth, recognition, prestige, acclaim, power, or position. Your business and personal principles can be passed forward, even through generations, though positive influences. Defining, in writing your personal goals is a method of reinforcing the ultimate reasons you are in business. Therefore, we encourage you to update your personal goals and align them with your business objectives as you remember why you “sit in the chair”.
2 - SERVPRO® SUN
READ READ GOOD BOOKS ENCOURAGE YOUR CHILDREN TO READ GREAT BOOKS LEAVE A LEGACY OF LOVING LITERATURE
Words of Wisdom No legacy is so rich as honesty. William Shakespeare It is up to us to live up to the legacy that was left for us, and to leave a legacy that is worthy of our children and of future generations. Christine Gregoire A child is your legacy. What better thing can you do in life than put a really good person in the world who’s going to make it a better place? Alexis Stewart All kids need is a little help, a little hope and somebody who believes in them. Magic Johnson My mother always told me that as you go through life, no matter what you do, or how you do it, you leave a little footprint, and that’s your legacy. Jan Brewer I am convinced that the greatest legacy we can leave our children are happy memories: those precious moments so much like pebbles on the beach that are plucked from the white sand and placed in tiny boxes that lay undisturbed on tall shelves until one day, they spill out and time repeats itself, with joy and sweet sadness, in the child now an adult. Og Mandino Children... are our legacy. Our responsibility. They are our destiny and we are theirs. The extent to which we fail as parents, we fail as God’s children. Dirk Benedict As philanthropists, the most powerful legacy we can create is one that keeps on giving - through our children. Laura Arrillaga-Andreessen Our days are numbered. One of the primary goals in our lives should be to prepare for our last day. The legacy we leave is not just in our possessions, but in the quality of our lives. What preparations should we be making now? The greatest waste in all of our earth, which cannot be recycled or reclaimed, is our waste of the time that God has given us each day.” Bill Graham The choices we make about the lives we live determine the kinds of legacies we leave. Tavis Smiley It’s always great to add to your legacy. Chris Jericho I’d love to build a brand, a legacy. Ryan Holmes All good men and women must take responsibility to create legacies that will take the next generation to a level we could only imagine. Jim Rohn The only thing you take with you when you’re gone is what you leave behind. John Allston Help others achieve their dreams and you will achieve yours. Les Brown My work... is my legacy. Patrick Swayze My role model was my grandfather. He instilled in me the feeling that no matter how successful you are you have a responsibility to help others. Kevin Johnson
NOVEMBER 2015 - 3
SPECTACULAR!!! Personal Best Volume Month September 2015
DAVID & GINA KLUGER SERVPRO® of Oakdale/North Bay Shore # 5933 SERVPRO® of Central Manhattan # 9417 SERVPRO® of East Windsor # 8413 SERVPRO® of Medford # 9584 SERVPRO® of Old Bridge/Cranbury # 9304 SERVPRO® of Southwest Brooklyn # 9097
$2,525,818.72
4 - SERVPRO® SUN
Top Ten Volume Leaders PER LICENSE AVERAGE VOLUME LEADERS September 2015
GROSS VOLUME LEADERS September 2015 2,525,818 1
Ralph & Noemi DiCristofaro
1
David Kluger
2
Allen & Susan Randolph
842,250 2
David Kluger
420,969
3
Lou & Michelle Sepe, D. & J. Sepe & N. Travis
705,983 3
Lisa & Doug Jameson
375,524
4
Michael Keating
669,426 4
John & Shayna Luciani
303,759
5
John & Shayna Luciani
607,518 5
Dion & Lynn Luzzi
302,426
6
Dion & Lynn Luzzi
604,853 6
John Majeski
301,554
7
Risa Kluger
461,563 7
J. & M. Wandtke and J. & L. Sangiorgi
245,987
8
Ralph & Noemi DiCristofaro
442,310 8
James Gibbs
244,962
9
Robert Citrangola
407,181 9
Lou & Michelle Sepe, D. & J. Sepe & N. Travis
235,327
10
Frank Mattos
399,139 10
Risa Kluger
230,781
442,310
Dion Luzzi, Servpro of Washington County, Rhode Island offers WorkCenter™ his own kudos
“WorkCenter™ is creating a raving Fan base for us! Clients are loving it. We are able to keep up with client demand, and manage it in real time. it’s been a game changer for us. We’re excited to grow our team and client base with it. Technology is changing our industry and showing our clients we are at the head of it has retained their trust”
NOVEMBER 2015 - 5
PERSONAL
BEST
Personal Best Volume Month September 2015
Chart Toppers July 2015 Associated Revenue Citrangola Cleaning Commercial McKendall Duct Residential Jones In-house Construction Randolph Mold Residential Maughan Rookie Fox Laing Subcontract D. Kluger Water Residential Luciani Mattos Total Volume D. Kluger
6 - SERVPRO® SUN
A three part series by Kevin Brown, Assistant Vice
For Sale
Part 1: Selling Your Franchise the Right Way! My first mentor in business taught me some valuable lessons about franchising—from helping people get into the business to helping them get out of the business. Wait…help them get out of the business? Really? You bet! People decide to start and invest in their own business for two reasons—freedom and control. Think about why you invested in a SERVPRO® Franchise. However you choose to label that life-altering decision, it boils down to the desire to have two things in your life—freedom and control. Perhaps you wanted the freedom to reach beyond the limitations of a job. Or maybe it was the excitement of exploring new ways to take an existing business to another level. Most of the people I have worked with in nearly three decades of franchising wanted to own their life and control the outcomes they achieve. I’ve heard dozens of iterations about why people buy businesses, but ultimately it always comes back to freedom and control. The driving desire for entrepreneurs is the freedom to chart their own course and the ability to control the outcome regardless of situations, circumstances, or other people. So, if it is about freedom and control (and it is) then you absolutely cannot leave the sale of your Franchise to chance. It does not matter if you’re selling next week, next month, or ten years from now. Right here, right now is the time to take control of your business and treat it as an asset so you can actively and positively influence the value. This will ultimately provide additional freedom to you in the years ahead as you transition to the next phase of your life plan.
My mentor used to say two things: “Everything is for sale!” and “The day you buy your business is the day you should start planning to sell it.” The first statement I get. Everything is for sale. The only question is, “At what price?” The second statement took me a while to wrap my head around, but over the years, I have realized time and time again how true those words are. Savvy, street-smart entrepreneurs are planning the sale of their business from the moment they open their doors. Why, you may ask? Because having a vision for the growth and value of your company—when it is fully developed and you are ready for the next chapter of life—will drive every decision and every step you take along your entrepreneurial journey. In fact, I have come to believe your strategy for getting out of the business is just as important, and perhaps even more so. Talking about selling your business is not taboo. In my opinion, it is taboo not to talk about it. Any prudent investor has a plan for acquiring, growing, and maximizing the value of their assets. There are two pieces to the value equation as it relates to your SERVPRO® Franchise business. The first part provides a platform to create your current lifestyle and contributions to society. This is the part that has the power to change your family tree and create financial freedom and security in the present. The second component provides you an opportunity to grow the value of the asset and maximize your return when it comes time to sell the business. In both phases, it is critical to understand embracing the Brand and implementing the System effectively is the key to leveraging your investment for the best possible outcome.
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e President of Marketing, Servpro Industries, Inc.
..continued Consider for a moment the outcome in your business by fully leveraging the Brand and implementing the System. To simplify, look at the five following areas in your business. Give yourself a grade on a scale from 1 to 10 in each area to see how you are doing. • • • • •
Revenue Profit People Leadership Assets
How did you measure up? Is your business growing in all of these areas? Are you running a “stages model” business that focuses on growing these five essential areas of your business? Do you have three quality managers in place focused on building a quality team of people? I can assure you the Franchises in the System that are actively maximizing their potential for returns are operating a stages model business. And the Franchises that are positioning their business to receive the maximum sales price when it comes time to sell their business are these very same Franchisees. Potential buyers of your business will buy into the power of the Brand, understand the value of the operating system, and embrace the support and training SERVPRO® offers. These are key selling points and have great value to potential buyers. However, what an investor is willing to pay you for your specific business will be based on how successfully you have implemented the System in your Franchise and how well you have protected the integrity of the Brand in your license territory.
A potential buyer has two possible questions; “Is this a fully managed business that I can leverage and take to the next level?” or “Is this a business that is in need of a complete overhaul?” The answer determines the value proposition in the mind of the buyer. The SERVPRO® Resale Assistance Program (RAP) has been established to assist you in implementing your exit strategy as it relates to the sale of your Franchise. RAP focuses on the following four key areas: • Preparing your business for sale • Identifying and attracting qualified prospects • Presenting your business effectively • Helping you facilitate the process and close the sale Over the next few months, we will highlight the four key areas of RAP and guide you through each step of the process. The Franchise Expansion and Resale Teams are committed to assisting you every step of the way to effectively package, promote, present, and successfully sell your business. For more detailed information about the Resale Assistance Program including the steps to enrollment, visit ServproNET® > Departments > Franchise Expansion > Resale Assistance Program.
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A three part series by Kevin Brown, Assistant Vice
Resale Assistance Program Part 2: Preparing Your Business for Sale
The day you invest in a Franchise is the day you should begin planning and preparing to one day sell your business. Every decision you make as a leader in your business is a critical factor in terms of how your business is ultimately positioned to provide you with the best possible outcome when it comes to selling your Franchise. When you are ready to begin executing your exit strategy, it is time to sit down and look at the most important components of your business that will make a difference to a potential buyer. I have listed four simple ideas below, after nearly 30 years in franchising, I believe are the most important factors in selling and maximizing your potential selling price. See the process through the eyes of a potential buyer. A lot of people make the decision to sell the business and see the process through their own paradigm. Their paradigm often consists of one simple question, “What can I get out of this business?” That’s a great question…if you want to limit the possibilities for selling your business. While it is a natural place to start, it is a narrow place to stay. I would like to suggest a couple of different questions that may lead to a better way to begin preparing your business for sale. Let’s begin the process by asking two questions and being honest with ourselves about the answer. The first question is “What is my business worth today?” The second question is “What is someone willing to pay for it?”
Those two questions force us to examine the business from the perspective of the buyer. Instead of “What can I get for it?” the question becomes “What is someone willing to pay for it?” and that changes everything. Once you begin to see the process through the eyes of the potential buyer a better outcome is driven in the remaining steps to preparing your business for sale. The next three ideas I want to share with you are what we sell in the process. When you work with the Resale Assistance Program (RAP) team at Corporate to help facilitate the sales process, a potential buyer focuses on only three things. I know what you are thinking, and yes, there are probably dozens of things they care about. But the truth is they all fit into one of three buckets. If you focus on these three areas, you will put your business in a position to be shown to prospects in the best possible light. The Brand The first thing that must be considered through the eyes of the buyer is the brand. The unspoken question when a prospect walks through your door is “Does this Franchise represent the leader in fire and water cleanup and restoration?” Everything they have seen and heard about the brand nationally is being sized up locally when they meet with you in person. The first thing I suggest is to take a look at the brand health of your Franchise. Look at everything from uniforms and vehicles to equipment and signage. Is the office neat, clean, and branded with pride? Is the culture or “inner condition” of your operation positive and forward-focused? Does your Franchise clearly say to anyone who walks in “this is the premier cleaning and restoration company in the world”?
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e President of Marketing, Servpro Industries, Inc.
The Operating System Do you run a Stages Model business? If you want to maximize the potential value of your Franchise, running a model business is imperative. One of the greatest assets I believe we have is the SERVPRO® operating system. I truly believe it differentiates us from other Franchise systems. Potential buyers want to see “the system” in action. It is one of the key reasons people buy Franchises. They do not want to reinvent the wheel. They want to implement and execute a proven method for achieving results. If they can walk into your business and see a well-managed business clicking on all cylinders, the value of that business increases. If you are not running a Stages Model business, I encourage you to go online or dust off the manuals, dig into Stages, and focus on the Key Result Areas in your Franchise, starting with the organizational chart. Do you have leaders in key roles? Do you have “A” players executing their roles and responsibilities with excellence? Look at your business from top to bottom and implement Stages one bite at a time. Believe me; it makes a difference to the prospects looking to buy a resale. Training and Support The final area I suggest when it comes to preparing your business for sale is the training and support all great franchisors have in place. One of the best decisions SERVPRO’s leadership team has made was the decision to become a learning organization. The amount of training and the commitment to learning and growing people is something that clearly makes this brand stand out in a sea of opportunities. The RAP sales team sells training and support. When we “share the SERVPRO® Story,” we
focus on world-class training and ongoing support. When a prospective buyer is looking at your business, they want to see the training and support. Is it visible in your business? Is your commitment to training and developing your team obvious? An operation infused with a culture of growing people increases the value of the brand and the operating system. The ongoing training and support is designed to help Franchisees implement the operating system and deliver the brand promise. When you meet with and talk to prospects, the training and support is a vital part of telling your SERVPRO® Story and adds tremendous value in the mind of a potential new owner. The RAP Team looks forward to working with you as you prepare your business for sale. If you have any questions, please do not hesitate to call us at 1-800-826-9586.
10 - SERVPRO® SUN
A three part series by Kevin Brown, Assistant Vice
RAP: PART THREE
Presenting Your Business Effectively We have all heard the old adage, “You can’t judge a book by its cover.” Do you agree with that? Or, do you believe as I do, that people can and do judge a book by its cover? Let’s face it, first impressions mean everything and yet in business and in life we all see it demonstrated over and over again—people just don’t understand or embrace this basic concept. I see them in airports and shopping malls and in restaurants. They are clueless about how they are presenting themselves to the world. I don’t mean to be harsh, but I often wonder if those people have homes without mirrors. It is hard for me to believe so many people would actually “sign off” on the actual package they put together to present themselves to the world. I know, some of you will tell me I’m off base and shouldn’t judge others based on their appearance; before you send me a bunch of emails, let me just say that it doesn’t really matter what I think...what matters is what the world thinks. And the world absolutely operates off first impressions and judges harshly the appearance of others. In our business, first impressions are everything. Period. We are a cleaning company and yet there are plenty of vehicles, uniforms, and offices bearing the SERVPRO® logo that would not necessarily support the idea that we are, in fact, a cleaning company. My point is how you package, position, and present yourself AND your business has everything to do with how the world perceives and receives you. When it comes to selling your business, first impressions are still everything. First impressions set the table for you to be able to showcase your work, sell what you’ve done and highlight the future potential for a prospective buyer.
When you work with the RAP team to help facilitate the sales process, we are going to Share the SERVPRO® Story with prospective buyers. We are going to sell the features, advantages and benefits of owing a SERVPRO® Franchise. We are going to help potential buyers see your business in the best possible light, but we need your help to accomplish the last part. You see, it does not do any of us any good to sell them on SERVPRO® if there’s no alignment with what they see when they visit your business. There are three things you can and should do to prepare your business to be presented to a pros pective buyer. Shine Shine your business up. In real estate, they call it “staging.” For our purposes, let’s just say you are shining it up. You are making sure you are putting your best foot forward. You are looking at your business from the building to the staff to the vehicles and equipment and making sure it looks good. We are the #1 brand in restoration...it is important that you look like the best in the business when it comes time to showcase your company. Show It is important you show your business in its most favorable light. Show a business that is structured and organized. Show a business that is following the system and focused on growth. Prospects want to see a business that represents a solid opportunity with a platform to plug into and grow to the next level. When you show your business, know clearly how you will talk about it. Showing your business well includes showing what’s “behind the curtain.” When the
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e President of Marketing, Servpro Industries, Inc.
layers are peeled back, make sure you can explain what’s underneath. Make sure you can talk about your Financials and speak intelligently about each division in your organization. Introduce the prospective buyer to key players by reviewing the organizational chart and help them see the vision for what your business is and what it can become. Sell Most people tell me they are not salespeople. If you want to sell your Franchise, it’s important that you learn how to work with the RAP team to sell the SERVPRO® Brand and System as well as your specific business. We can help you determine the best positioning and sales message for highlighting your business to prospective buyers. This is vitally important because potential buyers have a lot of options and we want to make sure we stand out among the other business opportunities they may be considering. An early mentor of mine used to say “nothing happens until somebody sells something.” It is important to understand whether you’re selling restoration or selling a Franchise, the prize always goes to the best salesperson. I encourage you to work with the RAP team to help you facilitate the sales process and showcase your Franchise in the best possible light to prospective buyers. The Franchise Expansion and Resale Teams are committed to assisting you every step of the way to effectively package, promote, present, and successfully sell your business. The following link provides detailed information about the Resale Assistance Program including the steps to enrollment: https://www.sso.servpronet.com/
connect/departments/franchise-expansion/resaleassistance-program-rap. You can also navigate to this link via ServproNET® by selecting Departments > Franchise Expansion > Resale Assistance Program. The RAP Team is available to assist you. If you have any questions, please do not hesitate to call us at 1-800-826-9586.