The economy is still struggling. Unemployment is still high. This must be the worst time to start a new business, right? Not necessarily. Some of my clients think I'm smoking something funny when I suggest that now is actually a good time to start a business. 92% of the population is still working and they need goods and services. Interest rates are at an all time low, space is available and negotiable and there certainly is an excellent supply of qualified workers.
Our Entrepreneur of the month started her business many years ago and has survived two recessions and her business is still growing. Franchises as a category have often grown during recessionary periods. The secret is to pick a good recession resistant franchise and follow their system.
Congratulations Mary Ellen and welcome to the world of entrepreneurship. We wish you continued success!
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Mary Ellen Hoffmann
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Mary Ellen Hoffmann was at a career crossroads. The manufacturing company she worked for in Milwaukee, Wisconsin was closing but she wasn't ready to retire. As vice president of sales and administration, one of only two female executives at the company, she had worked her way up the ranks and was ready to succeed again. She knew that to maintain the level of income and decision-making power she had, her best business choice would be to open her own business. The question was what?
Mary Ellen toyed with the idea of staying in manufacturing, but couldn't find anything appealing. She and a friend looked at some available factories and businesses, but found they were going around in circles. She finally made the decision that she would try something on her own. "I know myself better than anyone else and if I was going to go forward with starting a new business, I needed help. After some initial research, I realized that franchising made the most sense for me. I wanted the structure and expertise a franchise provides. I didn't want to hunt and peck for the right thing to do. A franchise organization already knows the right thing to do. That's what guided me down the path. I know my strengths and weaknesses and franchising was the right choice."
She really wanted to start a coffee and bagel place, but found the financial investment was too high. As she considered other opportunities, the maid industry popped up. It caught her curiosity and, being somewhat of a neat freak, she thought it was something she could tackle.
Mary Ellen investigated numerous maid companies before choosing Maid Brigade. "I talked to the vice president of franchise recruitment, vice president of operations, executive director of training and franchise owners. It was one of those times in my life where everything just clicked. I felt it was the right group of people I wanted to be associated with. And once I decided Maid Brigade was my business choice, I jumped right in."
Mary Ellen and her sister attended the initial weeklong training together and then headed back to Milwaukee to set things up. Mary Ellen's sister helped her with the business for the first couple of years. By the time the Maid Brigade trainers arrived, the two were extremely well organized and ready to go. Mary Ellen started with one team when she opened eight years ago and it didn't take long until she had two and then three teams onboard. "Each year I've been in business I've grown. The first few years, I grew 50-60 percent, then 40 percent and this year 33 percent. I now have 13, and on occasion, 14 teams," she said.
"I have been very fortunate, but I never would have grown the way I did if I didn't follow the Maid Brigade rules. I didn't need to reinvent the wheel. That's why I bought a franchise and always did what they told me to do. And, it's paying off."
Mary Ellen's initial customers came from the Yellow Pages ad, direct mail, cooperatives like Money Mailer and even some radio advertising. She feels like she had developed brand awareness rather quickly. As her business started to grow, Mary Ellen talked to other successful franchise owners to find out what they were doing. She explained, "They all said the same thing. It takes money to make money. So I committed myself to reinvesting what I made back into advertising and developed a diverse marketing plan. I watched my marketing results very carefully until I figured out what worked in my market".
For the first time since she opened her doors, eight years ago, she increased the size of her Yellow Pages ad. She also advertises in some community newsletters like church bulletins and participates in raffle and donation programs. But she still says that it's the tried and true things that work best.
Even though Mary Ellen has a really great salesperson, she knew the National Sales Center was a slam-dunk. By taking advantage of the NSC, she can transfer overflow calls, and have her nights and weekends covered as well. She never comes back to the office on a Monday morning without some weekend bookings from the NationalSalesCenter. "The NSC is great. My phone is always being answered. There is no downside and the staff there is great as well. It's a terrific tool and it shows in my numbers," she emphasized. Mary Ellen also uses Maid Brigade's proprietary software tools to manage her business and grow sales.
Franchises are continually evolving, a work in process. Franchisors and franchisees continually work together to improve their business model and grow sales. Because Mary Ellen was one of Maid Brigades high achievers, she was asked to become a member of the franchise support team. Now, as one of four support group consultants, she helps new franchisees in all areas of support from financial and marketing questions and everything in between. She serves on the Franchise Advisory Council and Task Force, is involved with special projects with franchisees that may need additional help getting their business off the ground and was on the committee for the development of their new software. Mary Ellen was even voted Maid Brigade Franchisee of the Year in 2006.
So what does Mary Ellen Hoffmann tell other people considering franchising and new or current franchisees looking for additional guidance? She sums it up this way. "If you are unclear in the direction you want to go in life, or if you don't have a well-rounded business experience in your past, franchising is the way to go. Know your strengths and weaknesses, make sure you are capitalized and that you have the money to grow. Know your market and think of yourself as a big business the day you open your doors. If you are thinking on a small level, you will never get out of that box and grow. Your success is your own and you are the one that has to appreciate it, no matter what anyone around you says."
Maid Brigade is a Green Clean Certified maid service that cleans your house the way you want it to be cleaned...consistently, reliably and affordably. You can learn more about their services or schedule a free estimate on-line at www.maidbrigade.com.
Mary Ellen teamed up with a good franchise, utilized their systems and followed their processes and is now enjoying the benefits of her efforts. As a company, Maid Brigade's same store sales for June show an increase of 6.3% over the same period last year. Total system wide sales for June are up 8.24% over May. So is now a good time or a bad time to start a business? You be the judge!
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